State Treasurer of Iowa

K-12 tuition update

Beginning in 2018, qualified expenses for federal tax benefit purposes include K–12 tuition at public, private or religious schools up to $10,000 per year per student in the aggregate across all qualified tuition programs for a designated beneficiary.

In June, Iowa law was changed. Retroactive to January 1, 2018, Iowa taxpayers can use their College Savings Iowa assets to pay for K–12 tuition with no Iowa state tax consequences as long as the beneficiary attends an elementary or secondary school in the state of Iowa that is accredited under Iowa Code Section 256.11 and adheres to the provisions of the federal Civil Rights Act of 1964 and Iowa Code Chapter 216.

State tax treatment of K–12 withdrawals is determined by the state(s) where the taxpayer files state income tax. If you are not an Iowa taxpayer, please consult with a tax advisor.

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