Pay attention to timing. There is no IRS ruling yet whether withdrawing money from a 529 account in one year and using it the next is allowed or not.
Make sure the expenses qualify. Double-check that you allowed to withdraw 529 savings to pay for college bill.
Take any scholarships or tax credits into account. The federal govt offers a number of tax credits worth up to $2500 per student.
Act fast on fixes. You are allowed only one rollover for each 529 account you own within any 12-month period.
Check before you make a big gift. Assets you contribute to a 529 account no longer count as part of your estate even if you the account owner. Each grandparent can contribute up to $14,000 a year in 529 account for each child without incurring gift taxes or $70,000 in one fell swoop, using up to five years of gifts at once. Still, people who make five-year gifts have to file a federal gift-tax form to make sure they get the full exemptions.
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