<p>I know that 529 funds are to be used for college level expenses only. Can we use 529 dollars to pay for my daughter’s AP exam fees (if all goes well, they may result in college credit–of course depending on the policies of whatever college she chooses to attend!)? Also, to take that a step further, can we use 529 dollars to pay for AP exam prep courses? I looked at the IRS website, but was unable to find the answer to my question. My sister recently learned that she can use 529 funds to pay for a high school student summer program at Cornell for her daughter. As long as her daughter meets all the requirements during the program, she will receive college credit for the course she takes, thus allowing the use of the 529 funds. Aren’t AP exams in the same spirit as the summer program?</p>
<p>I have no idea how to answer this question, but I can venture a guess that the answer for AP exam PREP COURSES is a no. Isn’t the best AP exam prep course the actual AP class?</p>
<p>I’m 99% positive they are not eligible - hopefully swimcatsmom will weigh in! The difference between Cornell’s program and the AP program, I think, is that there will be no awarding of credit by the AP exam prep course and the AP exam itself is not guaranteed to award credit. Some schools will not accept the AP credit for certain courses. Finally, they don’t seem to meet the definitions of “required” given in Pub 970.</p>
<p>A definite no for the AP prep and I doubt that the AP exams would qualify either.</p>
<p>Thanks for your responses. It does sound too good to be true, I guess…</p>
<p>I don’t think they would qualify. They are not expenses required for enrollment at an eligible institution. SAT/ACT and college application fees do not qualify either. I doubt the IRS is very big on the ‘spirit’ of anything. </p>
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