Records Needed if You Are a Participant in a Qualfied College Saving Plan

Sandy Botkin
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Taxbot, deductr, deductor, deducter, taxes, business taxes, how to reduce my business taxes, business tax write offs, tax deductions, car tax deductions, sandy botkin, irs, irs audit, CPA, mobile expense tracker, mobile mileage trackerIf you are a participant in a qualified tuition plan such as a Prepaid Tuition Plan or Section 529 Savings Plan for college, you will need to read over this post.

When these plans pay the college tuition, you will receive an IRS form 1098 for the payment as income to you! You will probably be contacted by the IRS about it. You will need to show that you used the money for the tuition and/or required fees. Copies of cancelled checks with the college billing statement should suffice, but you will need to keep these if IRS contacts you. Forewarned is forearmed.

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