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[quote=Anonymous][quote=Anonymous]Receive tuition bill.  Pay it with 529 funds. Is there some hack that you’re looking for?[/quote]

Previous poster, if you can’t be helpful abstain from posting. You’re just being snarky here. From the Wall Street Journal:

First, make sure you’ll be using the money for qualified expenses, such as tuition, room and board, books and supplies, and computers. Expenses that don’t qualify include things like transportation, campus parking, cellphones, club fees or dues, or furnishing a dorm room, according to the College Savings Plans Network, a repository for 529 plan data.

For tuition and on-campus room and board, the easiest thing to do is request that 529 money be sent directly to the college or university. But account owners can request reimbursements for eligible out-of-pocket expenses—say for the purchase of books or a computer—that they or the beneficiary incur.

The account owner has the responsibility to keep all purchase receipts for tax purposes. Plans won’t ask to see verification that you’re using the funds for a qualified expense, but the IRS might. Owners will want the receipts in case of a tax audit, Ms. Biar says.

Another important tax issue: It is essential to take a distribution within the same calendar year that you incurred the expense, says Indiana State Treasurer Kelly Mitchell.

If you pay out-of-pocket for a covered expense in October 2021 but don’t remember to reimburse yourself until February 2022, that distribution would be considered a nonqualified expense, she says. There could be state and federal tax consequences, and some plans may impose fees or penalties.
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