Let's discuss Qualified Education Expenses

So what exactly is qualified education expenses? Let's look at the IRS definition which says "qualified education expenses are tuition and certain related expenses required for enrollment or attendance at an eligible educational institution." http://www.irs.gov/publications/p970/ch02.html#en_US_publink1000204337
Now for those of you who own ESAs (Education savings Accounts also formerly known as Coverdell IRAs) there is slightly more flexibility with what items are considered qualified. For example you can withdraw funds for uniforms, computer technology and equipment and even software that is strictly educational only, tuition and fees, books and supplies for children in Kindergarten through college. With 529 college savings plans uniforms are not on the list and the computer equipment? Yes, recently added per the IRS "  Qualified tuition program (529 plan). For 2009 and 2010, qualified education expenses include expenses paid or incurred for the purchase of computer technology, equipment, and Internet access to be used by the beneficiary and his or her family while enrolled at an eligible educational institution. For more information, see Qualified education expenses in chapter 9."  So we know tuition is a go obviously...but the certain related is definitely the gray area. Always think required for attending the school. Keep those lists from the school (if any) showing items your kids will need, the syllabus from the high school or college professors showing the books and supplies needed to successfully complete the course. Keep all receipts. I repeat, KEEP ALL RECEIPTS. This is the CYA portion folks. In case there are any questions or concerns you will have your back up.