![]() ![]() ![]() That will only show tuition, so your withdrawal amount from the 1099-Q is almost always going to be higher than the 1098-T. It DOES NOT matter what the 1098-T from the university says.You DO NOT have to provide them with records proving what the money was spent on (you might later in the event of an IRS audit, but 529 account withdrawals are initially based on the honor system, not reporting).You’ll get a 1099-Q in the mail showing any withdrawal from a 529 account, and your tax-person is supposed to assume that the entire amount was spent on qualified education expenses. NOTE: What your spending for off-campus has to be LESS THAN or equal to what it would cost to live on campus with a full meal-plan. You can use 529 accounts to pay for living off-campus, including but not necessarily limited to rent, utilities, internet, and groceries – anything that would be part of the package deal you get living on-campus in the dorms. Unlike for other education tax credits and spending, “qualified higher education expenses” under a 529 plan includes room, board, fees & equipment, books, and anything else considered a “reasonable” expense for attending the university.Ĭovers off-campus living. Here are some tips, tricks, and important information we like to pass on regarding the functional use of a 529 account.īroad definition. Saving into a 529 account for future education expenses is all well and good, but what about when you finally get a kid out of high-school and need to start spending it? How does that work?
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