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Level 1
posted Oct 25, 2023 9:12:24 AM

Pre-paid college unspent funds

We pre-paid for 2 years of campus housing for our son and he only used one year. When we get the money back from the pre-paid service, do we need to report it? Is it taxable? (Florida)

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1 Replies
Employee Tax Expert
Oct 25, 2023 9:59:19 AM

Since the room and board fees that you prepaid were not deductible in the year you paid them, nor did they qualify for any tax credits, they should not be taxable to you or your  son. You and he should have no reporting requirements on this refund.