What Can I Spend 529 Dollars on?
What can I spend 529 dollars on?
In order to avoid taxes or penalties on 529 dollars, remember to keep all of your records as you must report the expenses to the IRS. You want to add up tuition and fees, room and board, computers, equipment and books, then deduct any tax free education assistance like pell grants or scholarships. Your accountant will also need to help you take into account any tax credits like the American Opportunity Tax Credit or Lifetime Learning Credit.
You CANNOT use 529 dollars to pay a student loan.