529 plan qualified expenses
Qualified 529 plan expenses include costs required for the enrollment or attendance at a college, university or other eligible post-secondary educational institution. Starting January 1, 2018, the definition of qualified higher education expenses (for tax purposes) is expanded to include up to $10,000 per year in tuition for K-12 schools, as a result of the 2017 Tax Cuts and Jobs Act.
Here is a list of common educational expenses and their qualification status:
Type of expense
Is it a qualified education expense?
Tuition and fees Yes, up to the full amount of college tuition and required fees. Limited to $10,000 per year for K-12.
Books and supplies For college expenses only
Computers and internet access For college expenses only
Room and board For college expenses only, if the student is enrolled at least half-time
Special needs equipment For college expenses only
Transportation and travel costs No, costs associated with transportation to and from campus, such as airfare or gas, are not qualified education expenses
Health insurance No, even health insurance policies offered by a school are not considered qualified expenses
College application and testing fees No
Extracurricular activity fees No
Student loans No
clothing, food (other than that included in room and board as explained above), recreation no
