If you contributed to the 529 plan, you will be able to claim a subtraction from income. If you withdrew money from your 529 plan, you may have to add the withdrawal back to your income if it was not used for educational purposes.
What is the 529 plan?
Its main purpose is to help families contend with the future high costs of their children’s or grandchildren’s college or vocational education
What are the qualifications?
Qualified higher education expenses, you can use the funds for a lot more than just tuition — including required fees, certain room and board costs, books, supplies, as well as computers and related technology costs such as Internet access fees and printers.
What are the limits?
Your maximum account balance per beneficiary for ScholarShare 529 is $529,000.
There’s no federal gift tax on contributions up to $15,000 per year for single filers and $30,000 for married filers
What about rollovers?
You can transfer funds from another 529 college savings plan to your ScholarShare 529 account for the same beneficiary once within a 12-month period without incurring a taxable event.
What if I don’t use it for education expenses?
The earnings portion of this type of withdrawal will be subject to tax, including the additional 10% federal tax.
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