Math class at the kitchen table. Gym outside in the backyard. History class from the living room. Families of the 50 million students across the nation forced to learn at home are facing a unique financial challenge.
In a time of crisis, targeted and innovative actions must be taken to ease the burden on families, especially when it comes to at-home and online schooling. We must address the costs incurred by families, like new materials, books, laptops or online educational programs.
That is why I am leading an effort in Congress to allow parents to use 529 funds to cover their child’s expenses during the pandemic. A dozen of my colleagues and nearly 50 national and state organizations agree with me: families should have the ability to use their education savings for distance learning expenses without penalty.
529 plans were designed by Congress to allow families to save money tax free for their child’s education expenses. Many families have taken advantage of this program. Currently, 529 plans can be used for college tuition and fees, K-12 tuition, and apprenticeship programs. However, under current law, using this money for costs incurred by virtual learning is subject to burdensome federal taxes and penalties. This must change.