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Level 2
posted May 21, 2024 4:51:25 PM

Are costs of class supplies 529 qualified expense if the student drops the class

My daughter took an art class that had a long list of required (expensive) supplies.   She dropped the class halfway through the semester.  We received no tuition refund and I understand that the tuition counts as a qualified expense for the 529 plan.  Does the cost of the materials that we purchased for the dropped class also still count as a qualified expense? 

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1 Replies
Level 15
May 21, 2024 6:52:35 PM

Q. Does the cost of the materials that we purchased for the dropped class also still count as a qualified expense. for a 529 distribution?

A. Yes. The fact that the course was not completed does not disqualify thee expense.