QUALIFIED EDUCATION EXPENSES AND 529 PLANS
Think all distributions from earnings from 529 plans are tax free because you used them all for educational expenses? — Think Again!
There are certain instances where that is not true. Are you utilizing the American Opportunity or Lifetime Learning Credit? Did you take a tuition deduction? Are you relying on the 1098-T form? These all alter the “equation”.
Essentially there is a limit as to how much educational expenses may be included to obtain a credit or a tuition deduction However it is important for you to supply us with all your educational expenses. Examples are below:
- Tuition & fees
- Room and board
- Books and supplies
- Computers and related equipment
- Insurance requirements
- Sports expenses and health club dues
- Electronics and smartphones
- Transportation and transporting costs
- Repayment of student loans