Qualified Tuition Plans
A qualified tuition plan (QTP) is a personal savings account. You use it to pay for a student’s qualified education expenses. The student must go to an eligible school. Distributions from the account are tax-free if you use the money for qualified expenses like room and board.
A state or an agency of the state usually establishes QTPs, and most states now offer them. Also, most plans are open to residents of any state. A private educational institution can also start a QTP. However, you can only use the money to prepay qualified education expenses.
An eligible educational institution is:
- One of these:
- Vocational school
- Other postsecondary educational institution
- Eligible to participate in a student-aid program administered by the Department of Education
Contact your state government or the educational institution to find out if they participate in a QTP.
To learn more, see these publications at www.irs.gov:
- Publication 525: Taxable and Nontaxable Income
- Publication 970: Tax Benefits for Education
What is a closing disclosure? When you buy a house, you will receive a closing disclosure that can benefit you at tax time. Learn more at H&R Block.
If your spouse died before signing their return, what should you do? Learn more about filing taxes for a deceased spouse from the tax experts at H&R Block.
As a young adult or millennial, taxes may be a new responsibility. Learn more about common deductions & credits for young adults with H&R Block.
Learn more about tax breaks for volunteering with the experts at H&R Block. The rules may surprise you.