We had to correct last years taxes due to not documenting cost basis on a mutual fund. Ugh what a mess to sort through 15 years of statements.
Made us realize we probably need good records for 529 plan withdrawals and pre-paid tuition plans. What do we need to save as documentation? All payments were made directly to the school, Do we need to save documents to prove this? The school also refunded these payments several times but we used the funds to pay the next semester.
One kiddo has graduated and the other graduates soon. I want to gather the info while it’s still available to us.
Thanks for your help and please move this thread to the parent thread if it’s the better forum.
you don’t need documentation to file your taxes, only on the small chance you get audited; I just printed out the “final tally” of the 4 years of bills on the college e-bill website after the final semester was paid, and tucked it away. I didn’t bother pulling out money for anything else (like books) which made it simple. I figure if I need to I can get the records from the 529 plan. Needless to say, we have not been asked about this by the IRS.