What tax records are needed for 529 plan third party payment?

A third party family member paid for a qualifying expense.

Do I need them to provide records showing that they received the amount and then spent it?

Or is it enough to show that the same amount withdrawn from the 529 plan was used for a qualifying expense?

Trying to make sure I have the paperwork I need in case of an IRS audit in the future, and I'm not sure if I need to ask the family member for more specific records.

I currently have the receipt from the school showing a payment was made to them, but it doesn't say from whom.

167

Level 15

Dec 22, 2020 3:38:21 PM

It is enough to show that the same amount withdrawn from the 529 plan was used for a qualifying expense. The receipt from the school, showing a payment was made to them, is all you need.

Although the general rule, in taxes, is that you must actually make the payment to claim the tax benefit, education is an exception.

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What tax records are needed for 529 plan third party payment?