If your college-bound student needs special supplies or equipment for a course, this is among the list of 529 allowable expenses.
Books are considered qualified higher education expenses, so 529 funds can cover the cost, tax-free. In fact, the most recent College Board data for the 2019-2020 academic year showed that undergrad students spent $1,240 on books. In some cases, students can spend a lot, buying new books for every class. Going to college and taking classes requires purchasing textbooks. That way your child won’t be hit with annoying fees that can add up. So whatever fees your child’s school charges, it’s covered by 529 savings funds. Each college charges a different set of fees, but these expenses are a part of the college package. Higher education often comes with various fees, like administrative fees, activity fees and more.
Although many people use 529 funds for college tuition, up to $10,000 each year can also be used to pay for private elementary, middle or high school tuition. Any tuition costs related to the beneficiary (your child or person the account is designed for) are covered. Tuition costsĥ29 eligible expenses, of course, include tuition. Here’s what is considered a 529 qualified expense. To be eligible for tax-free 529 distributions, qualified education expenses must only be used for certain things. However, it’s important to confirm whether 529 funds are used for a qualified purchase to avoid surprise taxes and penalties. Many educational expenses are considered qualified expenses. Qualified education expenses 529 plan FAQ Qualified higher-education expenses for 529 plans
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