24 Jan QUALIFIED EDUCATION EXPENSES AND FORM 1098-T

Schools must send their students a 1098-T form to report the amount of qualified education expenses paid by the student during the year. This form is important because the information it reports is used to calculate many of the educational tax benefits the IRS offers. The 1098-T will include a number of boxes which report the amount for qualified education expenses paid, the amount billed, scholarships and grants administered by the school, and advance payments. If you do not receive a 1098-T from the school in the mail, your student will need to access their account online and print one.

Changes in 529 plan rules include making computers and related equipment a qualified education expense for 529 purposes. The new legislation also allows account owners who take a withdrawal but then get a refund from the school to redeposit that money in the 529 plan within 60 days with no penalties.