The American Recovery and Reinvestment Act of 2009 added computer equipment and technology expenses for students to the list of college expenses that can now be paid for by a 529 plan during 2009 and 2010. A 529 plan is an educational savings plan that allows parents or other individuals to set aside funds for future college costs. Although the contributions are not deductible on your federal tax return, the investments within the plan grow tax-deferred and the distributions for qualifying expenses are not taxed at the federal level.
In addition to the cost of the equipment, these allowable expenses include Internet access and related services. Obviously, the student (the beneficiary of the plan) must use the items paid for by the plan while they are enrolled at an eligible educational institution. The IRS defines an eligible educational institution as any college, university, vocational school or other postsecondary educational institution eligible to participate in a student aid program administered by the Department of Education.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.