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Level 1
posted Mar 14, 2021 11:29:34 AM

Do I pay tax for a 529 plan withdrawal used for tuition fees and expenses in a foreign country that does not have a federal school code?

I have a proof of payment of tuition fees from the university, list of book fees: I assume this is not taxable. Student housing is not managed by the school so assume this rent would be taxable.

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2 Replies
Expert Alumni
Mar 14, 2021 12:22:20 PM

According to this Turbo Tax link by awesome alumni AnnetteB, "Unless your university participates in a student aid program administered by the US Department of Education, then it would not be considered an eligible education institution for the purpose of the American Opportunity Tax Credit and you would not qualify to claim the credit."


To be sure, follow this link to look up your university to see if it follows IRS guidelines.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unless your university participates in a student aid program administered by the US Department of Education, then it would not be considered an eligible education institution for the purpose of the American Opportunity Tax Credit and you would not qualify to claim the credit

 

To be sure, follow this link to look up your university:  https://www.irs.gov/individuals/eligible-educational-inst

Level 15
Mar 14, 2021 12:25:47 PM

Q.  Do I pay tax for a 529 plan withdrawal used for tuition fees and expenses in a foreign country that does not have a federal school code?

A. Yes.

 

Qualified expenses for a 529 plan distribution must be at a Dept of Education qualified school, the same as for a tuition credit or deduction.