![]() ![]() Any qualified expenses you incur must align with withdrawals from a 529 account in the same tax year. After all, it will be you, the owner of your 529 plan, who is responsible for any tax reporting and potential liability if your withdrawals exceed qualified expenses or you cannot substantiate those expenses.ģ. Have this “documentation discussion” sooner rather than later with the recipient of 529 funds. ![]() Privacy rules often do not allow parents to view bills and expenses from the university-and the fact is, many purchases such as textbooks and other education and living costs will likely be made by your child, who may be a long way from home. That means showing documentation in the form of receipts, cancelled checks and other forms of payment. You need to show the IRS that withdrawals from your 529 plan did indeed go toward eligible educational expenses. Tell your college student to save receipts and billing statements. In general, it's best to stick the expenses outlined by the IRS.Ģ. Some expenses that aren't covered include travel expenses to and from campus, campus logo items such as hats or sweatshirts, and computer games, among other things. Computers (including tablets) and peripherals such as printers and education software are also covered. Eligible expenses at colleges, universities and other post-secondary institutions include tuition, books and supplies, room and board, and special equipment required by the school or class (such as an easel for art students). Take out money for "qualified education expenses" only. ![]()
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