Qualified tuition programs

Qualified higher education expenses generally include expenses required for the enrollment or attendance of the designated beneficiary at any college, university, vocational school, or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education.

In addition, for purposes of QTPs, qualified higher education expenses include tuition expenses in connection with a designated beneficiary's enrollment or attendance at an elementary or secondary public, private, or religious school, i. They also include expenses for fees, books, supplies, and equipment required for the participation in an apprenticeship program registered and certified with the Secretary of Labor and qualified education loan repayments in limited amounts. QTP contributions on behalf of any beneficiary can't be more than the amount necessary to provide for the qualified higher education expenses of the beneficiary.

Contact the program's trustee or administrator to determine the program's contribution limit. Contributions made to a QTP aren't deductible. In the case of a donor who makes the election described in paragraph 2 B and who dies before the close of the 5-year period referred to in such paragraph, notwithstanding subparagraph A , the gross estate of the donor shall include the portion of such contributions properly allocable to periods after the date of death of the donor.

Except as provided in subparagraph B , in no event shall a distribution from a qualified tuition program be treated as a taxable gift.

The tax imposed by section d 4 shall apply to any payment or distribution from a qualified tuition program in the same manner as such tax applies to a payment or distribution from a Coverdell education savings account. This paragraph shall not apply to any payment or distribution in any taxable year beginning before January 1, , which is includible in gross income but used for qualified higher education expenses of the designated beneficiary.

For purposes of subparagraph B and subsection d , amounts treated as a qualified higher education expense with respect to the loans of a sibling of the designated beneficiary shall be taken into account with respect to such sibling and not with respect to such designated beneficiary. Each officer or employee having control of the qualified tuition program or their designee shall make such reports regarding such program to the Secretary and to designated beneficiaries with respect to contributions, distributions, and such other matters as the Secretary may require.

The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required by the Secretary. In the case of an individual who is an eligible student as defined in section 25A b 3 for any academic period, such term shall also include reasonable costs for such period as determined under the qualified tuition program incurred by the designated beneficiary for room and board while attending such institution.

For purposes of subsection b 6 , a designated beneficiary shall be treated as meeting the requirements of this clause. An interest in a qualified tuition program shall not be treated as debt for purposes of section Notwithstanding any other provision of this section, the Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section and to prevent abuse of such purposes, including regulations under chapters 11 , 12 , and 13 of this title.

The date of the enactment of this paragraph, referred to in subsec. The Higher Education Act of , referred to in subsec. For complete classification of this Act to the Code, see Short Title note set out under section of Title 20 and Tables. III and inserted concluding provisions. Prior to amendment, cl. B generally. A generally. Prior to amendment, subsec. Any such report shall include such information as the Secretary may prescribe.

Amendment by Pub. Amendment by section l 15 of Pub. Q of Pub. Amendment by section 21 of Pub. Amendment by section a of Pub. Amendment by section h 1 A , B of Pub. Please help us improve our site! No thank you. LII U. Code Notes State Regulations prev next. B which meets the other requirements of this subsection. States control the amount you can contribute to a plan account, though generally there is no cap on annual contributions. An individual can be the beneficiary of multiple plan accounts and only limits set by the state apply.

Any remaining amounts in a plan can be rolled over to an ABLE account for the beneficiary or their qualifying relative. Our Tax Pros will connect with you one-on-one, answer all your questions, and always go the extra mile to support you. We have flexible hours, locations, and filing options that cater to every hardworking tax filer.

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