CAPE Successful in Advocating for Changes to Tax Law Affecting Private Schools

January 19, 2018. Prior to the passage of the new tax law in December, the Council for Private School Education invited voters to contact Congress about several related issues, all of which were, according to CAPE, favorably addressed in the final legislation.

As detailed in CAPE’s monthly newsletter, Outlook, these items are:

• 529 Savings Accounts, which were previously limited to savings for college tuitions, have been expanded to cover K – 12 expenses, such as private school tuition. Up to $10,000 can be distributed annually to pay for the cost of sending a child to a public, private, or religious elementary or secondary school.
• Retention of tax-free tuition reductions for children of teachers and other employees in private schools
• Retention of tax-free benefits of up to $5,250 annually for educational assistance to school employees
• Retention of the $250 above-the-line deduction that educators can take for classroom materials or professional development.

In its letter supporting the expanded use of 529 plans, CAPE also called on Congress to “enact additional school choice legislation that more directly benefits low-income families who cannot afford to save for their children’s education.” The CAPE letter noted that a “school choice initiative to assist families of modest and low household incomes would help level the playing field by giving all children access to schools selected by their parents.”

For more details, download the January 2018 edition of the CAPE Outlook. We also encourage you to consult your personal accountant for additional information and interpretation of the law and its implications for you, your school, or your family.

CAPE is a coalition of national organizations and state affiliates serving private elementary and secondary schools; AMS executive director, Dr. Timothy Purnell, represents AMS on the CAPE Board of Directors.