Computer Expenses Eligible for 529s in 2009-2010
The recently passed stimulus bill includes a nice gift to 529 account holders who’s beneficiaries are in college this year or next. According to an article on CNN.com, computer related expenses will be eligible expenses for 529 plans in 2009 and 2010. Previously, eligible expenses included only tuition, room and board, and books, supplies and equipment that were required for attendance at the school.
Although this is just a short term benefit, I wouldn’t be surprised if this sort of expense inclusion is allowed in later years, too.
[...] In light of the recession, we’ve already seen the federal government give more tax breaks for 529 plans. So far it has been in the form of helping parents with kids already in college through expanding eligible 529 plan expenses. [...]