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LarryLange
Level 2

I have a college savings plan (Tomorrow's Scholar). Is a car considered a qualified expense for college?

 
3 Replies
DoninGA
Level 15

I have a college savings plan (Tomorrow's Scholar). Is a car considered a qualified expense for college?

Sorry, no.  A personal vehicle is not a qualified education expense.  Nor is travel associated with education a deduction or a qualified education expense.

LarryLange
Level 2

I have a college savings plan (Tomorrow's Scholar). Is a car considered a qualified expense for college?

A percentage of the money in the college savings plan has been taxed.  If I withdraw money for a non-qualified expense, 

 

 

 

 

 

 

 

 

 

 

 

A perecentage of the money in my college savings plan was taxed when placed in the account.  If I withdrawl money for a non-qualified expense, do I have to pay tax again on that money?

 

 

 

 

 

 

 

 

SoCalGal22
Employee Tax Expert

I have a college savings plan (Tomorrow's Scholar). Is a car considered a qualified expense for college?

Thank you for asking this question about 529 qualified expenses and penalties.

yes there are penalties for taking out money from these accounts for non-qualified expenses.  And many people don't realize that they can over withdraw until they combine scholarship payments and 529 account withdrawals on the Education Credit.  There's a lot on information explained here 

 

https://turbotax.intuit.com/tax-tips/college-and-education/information-on-529-plans/L0vrZiFuC

 

I hope this answers your question about 529 account qualified expenses and penalties. 

have a great day!

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