Distributions for Coverdell Education Savings Accounts

Amounts distributed from a Coverdell Education Savings Account will generally be tax-free to the child to the extent the withdrawal does not exceed the child's qualified higher education expenses at an eligible educational institution for that year.

Qualified Higher Education Expenses

The definition of qualified higher education expenses has been expanded to include qualified elementary and secondary school expenses at public, private and religious schools.

Qualified elementary and secondary school expenses are:

• Tuition

   

• Fees

   

• Books

   

• Supplies and equipment

   

• Academic tutoring

   

• Special need services

   

• Uniforms

   

• Transportation

   

• Computer technology or equipment

   

• Room & board (the cost of attendance or the actual amount billed by the eligible educational institution.)

   

• Amounts used to purchase tuition credits or certificates

   

• Amounts contributed to a qualified state tuition program for the beneficiary.