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Reply to "PhD fellowships and 529s: tax and spending advice"
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[quote=Anonymous]There is no double dipping. If the U pays your qualified expenses, you cannot use the money from the 529 without paying tax. No penalty, but you do have to pay the tax on the growth. The 529 list of expenses is broader than the scholarship list. Pub 970 of the IRS discusses this. [/quote]
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