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Level 2
posted Dec 9, 2021 7:33:30 AM

For 529: I am aware that we can use up to $10,000 per child per year for K-12 tuition. Is it only for K-12 tuition or can that also cover books, supplies

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11 Replies
Level 15
Dec 9, 2021 9:09:11 AM

Money from a 529 account can be used for major post-secondary education costs such as: Required tuition, fees, books, supplies and equipment.

Level 2
Dec 9, 2021 9:14:43 AM

Hi @Bsch4477 , thanks for your reply. What about for secondary (K-12) education costs? 

Level 15
Dec 9, 2021 9:38:39 AM

Unfortunately you can only cover tuition costs for K-12. 

Level 15
Dec 9, 2021 10:03:08 AM

Q. Is it only for K-12 tuition or can that also cover books, supplies?

A. Only tuition.

Level 2
Dec 9, 2021 11:13:23 AM

Thanks for your reply. 

 

I have a follow up question: for homeschooling kids who take online courses, can 529 be used to cover the online courses tuitions?

Level 15
Dec 9, 2021 12:14:44 PM

Students can use a 529 plan to pay for online courses if the tuition and fees are paid to an eligible institution.  An eligible institution is generally a college. 

Level 15
Dec 9, 2021 12:50:07 PM

From IRS Publication 970:

Eligible elementary or secondary school. An eligible
elementary or secondary school is any public, private, or
religious school that provides elementary or secondary
education (kindergarten through grade 12), as determined
under state law.

 

I take that to include online schools.

Level 15
Dec 9, 2021 1:26:56 PM


@Hal_Al wrote:

From IRS Publication 970:

Eligible elementary or secondary school. An eligible
elementary or secondary school is any public, private, or
religious school that provides elementary or secondary
education (kindergarten through grade 12), as determined
under state law.

 

I take that to include online schools.


Your answers are in chapter 8 here.

https://www.irs.gov/pub/irs-pdf/p970.pdf

 

Presuming that the online school is accredited in your state, the fees would count as eligible tuition.  

Level 15
Dec 9, 2021 1:38:35 PM

Agree with definition of eligible schools. The question is whether a child who is home schooled is considered to be enrolled in a tuition based online school fitting the description of an eligible school. 

Level 15
Dec 9, 2021 2:32:56 PM

@Bsch4477 

I don’t understand the objection. Suppose 2 students. John Smith is failing math, and takes an online summer school course for additional credit so he can move to the next grade level. Jane Doe is homeschooled, and her mother is not good at math, so Jane takes the same online course. Why wouldn’t the online course fees be considered eligible tuition for both students?

Level 15
Dec 9, 2021 2:41:44 PM

Poster is asking about  K-12 education for a 529 distribution.   I don't find a requirement in Pub 970 for the tuition to be paid to an "eligible institution" to qualify. I only find that tuition must be paid "at an elementary or secondary (k-12) public, private or religious school of the beneficiary’s choosing".  

Additional Reference: https://www.irs.gov/newsroom/irs-offers-guidance-on-recent-529-education-savings-plan-changes