To ease the financial burden on many families, funds in 529 plans should be expanded to help students obtain the needed curriculum material or online educational material.” said Rep. To get the screen to enter Room & Board, answer yes when asked if you have book expenses. TurboTax will apply it to the 529 distribution. Then enter educational expenses, at the ed expense section, including room & Board. (Note: federal qualified expenses are different than New York state qualified expenses. “With schools closed, students and families are adjusting to online and distance learning. First enter the 1099-Q, under 529 distributions. Pay no federal taxes on qualified withdrawals. House of Representatives to attach similar legislation to the next coronavirus relief measure. Representative Bryan Steil (R-Wisconsin) has lead an effort in the U.S. Likewise, once a borrower receives 10,000 in. Similarly, if you have two parent-owned 529 plans, one for the beneficiary and one for the beneficiary’s sibling, at most 10,000 combined from the two 529 plans can be used to repay the beneficiary’s student loans. He introduced legislation in 20 to expand qualified education expenses for 529 plans to cover more K-12 education expenses for all students, including homeschool students. The borrower can’t bypass the 10,000 limit by having two or more 529 plans. Senator Cruz is a strong supporter of homeschooling. Senate when Senator Ted Cruz (R-Texas) blocked the use of unanimous consent, hoping to restore these proposals. Passage of the legislation was delayed in the U.S. The SECURE Act also included a proposal to allow 529 plans to be used for the same qualified elementary and secondary school expenses as Coverdell education savings accounts, such as tutoring, special needs services, books, supplies and equipment, not just $10,000 in tuition.īoth proposals were dropped from the final version of the legislation that passed the House, in part because of opposition from teacher unions.

The Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act) originally included a proposal to allow 529 plans to be used for homeschooling expenses, such as textbooks, online education materials, tutoring services, and dual enrollment programs. Qualified expenses include books, supplies and equipment, computers and internet access, and special needs expenses, but for college expenses only. The tuition and fees can include accredited online education programs, but not homeschooling expenses.

This would help families or children who are now learning from home.Ĭurrently, qualified education expenses for a 529 plan include college tuition and fees and up to $10,000 per year in K-12 tuition. Some members of Congress are calling for expanding coverage due to the coronavirus pandemic’s zoomification of elementary, secondary and postsecondary education. section 529, and has one qualified tuition program, the New York State College. Options for using 529 plans to pay for distance learning and online learning are limited, especially for K-12 and homeschooled students. programs under IRC section 529, as of the specified date of January 1, 2015.

Nys 529 eligible expenses 2015