Expenses paid for with the 529 are not eligible for credit. However, money paid out of pocket IS eligible. Example:
- $20,000 tuition,
- $20,000 529 disbursement.
- But half of the 529 money goes to room and board. This leaves $10k paid out of pocket to qualify for the credit.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
