<p>I'm in the process of planning for my year-end 529 plan withdrawals. I wanted to get some CC opinions about some of these expenses......do you think they qualify as eligible educational expenses as defined by the IRS?</p>
<p>From Pub 970.......</p>
<p>"The following expenses must be required for enrollment or attendance of a Designated beneficiary (defined later) at an eligible educational institution.</p>
<p>Tuition and fees.</p>
<p>Books, supplies, and equipment."</p>
<p>My daughter is a full-time nursing student. This semester they were required to purchase a specific set of medical scrubs/labcoat, a stethoscope, and white leather shoes. Do these meet the definitions of "supplies and equipment"? I think so.....but what about this? Before they can begin their clinicals in the hospital next semester, they were given a list of "critical requirements" to be fulfilled.</p>
<p>These included: Background/fingerprint testing, drug testing, TB blood test, and immunization titer testing (blood tests to prove their childhood immunizations are still protecting them). How about these expenses? Since they were required of all nursing students, would you take a 529 withdrawal to pay for them?</p>
<p>My son is an Industrial Design student (full-time as well). This semester he was not required to purchase any text books. He has multiple studio classes. In these classes they do MANY projects. In the course of doing these projects and building models, he has made tons of purchases from the campus art store as well as a store off-campus. I have maybe close to 100 receipts for all these things he has bought to complete these assignments. The students were not specifically required to buy these supplies, but of course in the process of completing the assignments these things had to be purchased.</p>
<p>JMO. I think the scrubs/stethoscope/shoes are fine. I wouldn’t do the rest. I don’t think fingerprints etc. are supplies or equipment. I don’t think the particular art supplies were required, just what he decided to do for his projects. Things like notebooks, pencils/pens that all students need aren’t considered required. My kids have needed chemistry goggles and iclickers which I would include, that sort of thing.</p>
<p>Question, is there enough money in the 529 that it won’t all be used up before they graduate? If not, I wouldn’t include the questionable stuff now.</p>
<p>You do know that 529 money can be used for room and board if the student is at least 1/2 time, right?</p>
<p>“These included: Background/fingerprint testing, drug testing, TB blood test, and immunization titer testing (blood tests to prove their childhood immunizations are still protecting them). How about these expenses? Since they were required of all nursing students, would you take a 529 withdrawal to pay for them?”</p>
<p>My daughter had these expenses while in nursing school; they are required for the nursing students to be able to work in the healthcare facilities. I think you can easily justify them as a legitimate expense since she cannot go forward in the nursing program without the tests. </p>
<p>I’m happy to report my daughter graduated in Dec. 2011, found a job that she loves and is officially off the parent payroll. One down, one to go :).</p>
<p>I agree with Arielsmom. You can justify them as fees and supplies required. I had to prove 529 exspenses one year because i forgot to file the 1099 from the plan and i submitted Bank statements which included entries from the school’s bookstore and they accepted that as an expense, even though it wasnt itemized.</p>
<p>So if you are audited and have to explain what you claimed, will you call a hepatitis vaccine a “fee” or a “supply”? Just wondering. Sees like it is a medical expense which is defined in Publication 970 and is not listed under qualified 529 expenses.</p>
<p>That is a true response but does not address the fact that it is neither a fee or a supply. Good luck with that. The fact the you came on this forum to ask about the legitimacy of that claim is enough to show that you know those type of expenses are neither fees nor supplies.</p>
<p>The term “fee” is rather nebulous and there is no real clarification as to what they are or what can be included. The OP has a legitimate question. I suspect the term “fee” is used for just that, things that may fall into a category that can be justified.
OP, my thought is, if it is a requirement, then I would include it as a fee. That’s just me. I did that throughout my daughter’s college years. Had to make a decision as to what was included in her 529 qualified expenses. Truth be told, these expenses are small compared to tuItion,room and board.</p>
<p>dadinator…3 kids (triplet soph’s) in college. Older brother just graduated in May…1 down 3 to go! One of the trips earned a full tuition scholarship. All 3 were HS valedictorians, and earned various schollies. So I’m trying to take every legitimate 529 withdrawal I can make.</p>
<p>We were very lucky…invested in Ohio’s Guaranteed Tuition 529 plan in the early 90’s…poured every dollar in to it that we could. As the tuition rates skyrocketed, so did our 529 balances. This plan was such a great deal, it didn’t last long…only a few years. Along with the generous state tax breaks, this had to be one of the best investment decisions we ever made…without a doubt.</p>
<p>milkandsugar…I think I am going to go ahead and take withdrawals for all these expenses. They are documented, and my D could not have continued in the Nursing program without paying for them…100% required of every Nursing student. Yes…they are “health care” in nature, but not your usual expenses. These were expenses required to satisfy hospital requirements to be allowed to participate in clinical experiences.</p>
<p>I agree with you completely…many, many gray areas in the tax law regarding 529 plans…</p>
<p>I just finished up with an IRS inquiry into our 2010 federal return. I had to provide all the documentation for our 529 withdrawals…was able to do that, and we owe $0 in additional tax (after the IRS initially wanted us to pay over $3600 more)!</p>
<p>Caveat to all parents/students…save everything…document, document, document everything!</p>
<p>Just a reminder to anyone who has kids attending an Ohio college…</p>
<p>This year all Ohio colleges were required to switch from quarters to semesters. As such, the normal billing/due dates may have changed in certain cases.</p>
<p>Please make sure you are careful to match up your 529 withdrawals vs. the actual expenses. For two of my kids, the Spring semester bill is due in December…but for the 3rd, the bill is not due until the 3rd week of January. Pay attention to these dates…it is important.</p>