Education-Focused Tax Proposals for Families

Empowering Education:
Tax Proposals for Families in 2025

This "Saving for College" article discusses two new education-focused tax proposals introduced in 2025: the Achieving Choice in Education (ACE) Act and the Student Empowerment Act. 

These bills aim to expand school choice and enhance the flexibility of 529 college savings plans. 

Key provisions include doubling the annual tax-free withdrawal limit for K-12 education expenses, increasing the gift tax exclusion for 529 contributions, and allowing funds to cover homeschooling and micro-schooling costs. 

The proposals seek to empower families with greater control over their children's education while incentivizing states to adopt policies supporting alternative education options.

Source: 2025 Education Tax Reform Proposals: What the ACE Act and Student Empowerment Act Could Mean for Families