Yes, here are the answers to your questions:
- Furniture, health insurance, and transportation are never QHEE for 529 purposes, even if they are in the school's "Official Cost of Attendance"(COA). These are non-qualified distributions, thus earnings are taxable income
- Yes, by making the scholarship taxable, you avoid "double-dipping" rules, which saves $2,000 of your Tuition/Fees to be "covered" by the 529 plan instead.
Please reach back if you have further questions.
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