<p>^^^
Yeah, I looked at that, after I made my post. The IRS pub and the examples make sense, if the non-qualified withdrawal from a non-student owned 529 is used by the student for his/her expenses.</p>
<p>But what if a parent owns the 529, and withdraws money to pay an expensive vet bill after the family dog gets hit by a car (for example)? Will this still be taxed against the student, the 529 beneficiary, who doesn’t directly benefit from the expenditure (put aside any emotional attachment to the dog)? What if the parent uses the money to take a solo vacation to Maui? Still taxed to the student?</p>