Audited over Scholarshare 529 withdrawals?

Mom0f3
Thu, 08 Oct 2009 20:04:54 +0000

I also got a letter regarding a withdrawal from our 529 for 2007. Some had been paid directly to the school and some to us for room, board, and books. I sent a letter back stating that the withdrawals were used for qualified expenses, giving the amounts for each. I got a letter back from the IRS a couple of months later stating the case had been resolved and I didn’t owe any taxes. They didn’t ask for documentation (although I had it if it had been needed). I sure hope this doesn’t happen again for each year!