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shippo676
New Member

Is a coverdell ESA account tax exempt if used on education expenses I.e Student loans? i thought it was but my refund dropped nearly $500 after i entered the info in.

 
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2 Replies
KrisD
Intuit Alumni

Is a coverdell ESA account tax exempt if used on education expenses I.e Student loans? i thought it was but my refund dropped nearly $500 after i entered the info in.

It is tax exempt if used for education expenses for the beneficiary. Paying tuition qualifies, paying student loans does not. 

CLICK HERE for IRS Pub 970 Education Credits

CLICK HERE for TurboTax information on Education Credits

Is a coverdell ESA account tax exempt if used on education expenses I.e Student loans? i thought it was but my refund dropped nearly $500 after i entered the info in.

Thank you

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