In the past the cost of computers and Internet access was not an allowable expense for distribution from a qualified tuition program, commonly referred to as a 529 plan. But with the enactment of The American Recovery and Reinvestment Act of 2009 that has changed, at least for the 2009 and 2010 tax year.
A nontaxable distribution can now include the cost of the purchase of any computer technology, equipment, or Internet access or related services. To meet the qualification the technology, equipment, or services must be used by the beneficiary while enrolled at a qualified educational intuition.
For more information about 529 plans, see the IRS publication 970, Tax benefits for Education, or the IRS fact sheet, “How 529 Plans Help Families Save for College; and How the American Recovery and Reinvestment Act of 2009 Expanded 529 Plan Features.”
Tags: IRS, Tax, Tuition
This entry was posted by Richard Rogers, EA on Friday, September 11th, 2009 at 6:58 am and is filed under For Individuals, Tuition Deductions. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
About The Author
Richard Rogers has been working as a tax professional for over six years and has been working with small businesses for over 20. As an enrolled agent, he routinely represents the interests of taxpayers before the Internal Revenue Service and Franchise Tax Board. He works in a tax practice that focuses on the special needs of individuals and small businesses.
Richard currently is employed in a private tax practice where he helps people and businesses resolve their tax issues, minimize their tax liability, and plan for their financial future. While Richard does most types of tax returns including individual, he specializes in small business returns including C-Corporation, S-Corporation, Partnership and LLC returns.
Richard also has a strong background in accounting, management, and information systems as he worked as a CFO and CIO for a software development company for 12 years.
Richard earned a bachelor’s degree in Business Administration from San Diego State University with in emphasis in Information Systems. He also taught business courses at the university. He currently stays abreast of tax law changes through continuing education, seminars, and research via the Internet.
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