Hi: My child is a freshman this fall and this will be our first time withdraw 529 and coverdell fund. I have some questions regarding the process
1. We selected the lowest campus meal plan, expecting he will be doing some eating off campus. The difference between the meal plan (lowest to highest) is $550/semester. Would I be able to use either 529 or coverdell fund to pay for the off campus meals (up to the $550 gap). We have our 529 plan issued a check directly to the school Bursar office to pay the outstanding bill. We are just wondering if we can disburse a check to my child to pay for off-campus meal (again, up to the $550 gap/semester).
2. We have incurred a lot of transportation expense during the college application process such as application fee, travel expense to visit school, etc. Could these be paid out of Coverdell fund? (I know they are not 529 qualified expense).
3. All disbursement will be done in my child's name. So the 1099Q forms from both Coverdell and 529 funds will be issued to his SSN. What does it impact the parent's tax return? Do we need to include his 1099Q in our tax return. Does he need to file tax return on his own? The 529 Plan has about 50% return, and his coverdell has 100% return, so on the 1099Q he will significant amount of earning. All disbursements will be used on qualified expense ONLY.
Thank you very much for your help
Best
L
1. We selected the lowest campus meal plan, expecting he will be doing some eating off campus. The difference between the meal plan (lowest to highest) is $550/semester. Would I be able to use either 529 or coverdell fund to pay for the off campus meals (up to the $550 gap). We have our 529 plan issued a check directly to the school Bursar office to pay the outstanding bill. We are just wondering if we can disburse a check to my child to pay for off-campus meal (again, up to the $550 gap/semester).
2. We have incurred a lot of transportation expense during the college application process such as application fee, travel expense to visit school, etc. Could these be paid out of Coverdell fund? (I know they are not 529 qualified expense).
3. All disbursement will be done in my child's name. So the 1099Q forms from both Coverdell and 529 funds will be issued to his SSN. What does it impact the parent's tax return? Do we need to include his 1099Q in our tax return. Does he need to file tax return on his own? The 529 Plan has about 50% return, and his coverdell has 100% return, so on the 1099Q he will significant amount of earning. All disbursements will be used on qualified expense ONLY.
Thank you very much for your help
Best
L
Statistics: Posted by liuruyu — Sat Aug 24, 2024 7:58 am — Replies 0 — Views 129