Section 529 Plan Distributions and College Refunds for COVID-19
Tax Notes, Vol. 169, No. 10, 1595-1598, 2020
5 Pages Posted: 4 Jan 2021 Last revised: 5 Jan 2021
Date Written: December 7, 2020
Tax planning and compliance challenges may arise for taxpayers who utilize 529 plans to pay for qualifying education expenses and subsequently receive refunds as a result of COVID-19. This article examines the scenarios taxpayers may be faced with and options available to help preserve the tax-efficiency of these plans and distributions made during college years.
Keywords: 529 plans, tax planning, COVID-19, college refunds, tax compliance
JEL Classification: H21, H25, K34, G51
Suggested Citation: Suggested Citation