Hal_Al....so for clarification, I paid for both Fall 2019 and Spring 2020 expenses in November 2019 and made corresponding withdrawals from the 529 plan to cover the expenses. Under normal circumstances, this would all be correct.
The college decided to refund room and board expenses in April 2020 because of COVID.
Any refund by the school of these expenses SHOULD be deposited back into the 529 within 60days to avoid penalites or taxes.
HOWEVER, since I will have Fall 2020 expenses coming due in July, I was wondering if I could avoid re-depositing the COVID refund into 529 because I will have offsetting expenses due in July and they occur in the same calendar year (tax year) as the refund. So you see, I just wouldn't withdrawal the full amount of Fall 2020 expenses. Instead I would reduce any future 529 withdrawal by the amount of the COVID refund.
