That has nothing to do with a required Health and Wellness fee that has to be paid as a condition of enrollment. For the benefit of others reading this thread, here's a basic breakdown.
- Out of pocket expenses: As it stands right now, congress has not renewed the tuition and fees deduction. So there are no out of pocket qualified education expenses that can be deducted on the federal return. That may change before the tax filing deadline though. But at this point in time I wouldn't hold my breath waiting.
- Scholarships: Can be used to pay for the qualified education expenses of tuition, books, and lab fees. That's it with no exceptions. Though the category of "lab fees" is rather broad.
- Grants: Can be used to pay for the qualified education expenses of tuition, books, and lab fees. Can also be used to pay for other education related expenses provided those other expenses are specified in the grant. Note that if the grant generalizes (ie; says something like "other related expenses") that's not good enough. The grant must be specific. If it's not, then it only qualifies to be used for tuition, books and lab fees.
- 529 funds: Can be used for the qualified education expenses of tuition, books, and lab fees. Can also be used to pay for the unqualified but allowed expenses of room and board *provided* the room and board was paid for in direct support of the education. As an example, if the student did not enroll in classes for the summer semester, yet paid room and board for that period of time, then what was paid during that time was not in direct support of the education and is therefore not deductible against the 529 funds.
