What happens if I used my sons college account for tuition but reimbursed it due to scholarship?

Kp21703
Kp21703 Member Posts: 1 Newcomer
edited December 2024 in Filing my taxes

What happens if I used my sons college account for tuition but reimbursed it due to scholarship?

Tagged:
· Share on Twitter

Answers

  • LeahB
    LeahB FreeTaxUSA Agent Posts: 10

    Hi Kp21703! Thank you for your question. These situations can be a bit complicated and depend on the college account used. According to the IRS, if a student receives a refund of qualified education expenses that were treated as paid by a Qualified Tuition Program (QTP) distribution, the student can recontribute these amounts into any QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need to figure the taxable part of the QTP distribution.
    Reference page 51: https://www.irs.gov/pub/irs-pdf/p970.pdf

    · Share on Twitter

Categories