529 and taxes question

[Anonymous]

My kids (still just 13 & 14) can go to the university where I work and tuition is covered 100%. Since we don't know if they will go there, we've been saving in their 529s. If they do, then the tuition benefits are taxed (I think like income). I'm wondering if we can use the 529 to pay the taxes owed? I'm not even sure I understand this all correctly, any advice would be helpful.

[Anonymous]

Anonymous wrote:My kids (still just 13 & 14) can go to the university where I work and tuition is covered 100%. Since we don't know if they will go there, we've been saving in their 529s. If they do, then the tuition benefits are taxed (I think like income). I'm wondering if we can use the 529 to pay the taxes owed? I'm not even sure I understand this all correctly, any advice would be helpful.

Use the 529 to pay for room and board, books, fees, computers, etc. I doubt you can use it to pay your taxes.

[Anonymous]

This is a very specific question that only your accountant should answer.

[Anonymous]

Seems highly unlikely that "paying taxes on a tuition benefit" is an allowed expense, but it will be based on the state where your plan is opened.

For Maryland, look here: https://maryland529.com/faqs

Also, check out this piece:
https://www.savingforcollege.com/article/what-you-can-pay-for-with-a-529-plan