The several most recent times that I paid tuition and fees for a university student there was a significant surcharge for using a credit card to pay. Instead I used a check.
However, we have used credit cards for other qualified expenses, such as books and a laptop.
As others have said, keep receipts. Make sure that you withdraw your 529 funds in the same year that you actually paid the qualified expense.
Does anyone know if the purchase of a new cell phone is considered a qualified expense?
Not a 529 qualified expense.
Good to know, thanks.
If you donât pay the college directly from the 529, but rather reimburse yourself/your student - then it is completely irrelevant what payment method had been used to pay for actual expenses.
The only thing âtrackedâ are the disbursements/reimbursements from the 529 vs. the actual expenses that year.
My daughter would pay apartment rent with Venmo or Zelle, utilities with charge card, and food/dining expenses with either cash, debit card or charge card. She would keep any purchase/credit card receipts in an envelope and bring it home during the next visit so that the amounts could be totaled, the receipts filed away, and she could be reimbursed.
Thanks, appreciate your feedback.
FYI: There are some schools that donât charge for using a credit card to pay tuition.
Is there a list of the 3 types of colleges? :
1: Can use credit card with no fee
2: Can use credit card with a fee
3: Cannot use credit card
I donât know if such a list exists and I wouldnât pick a college based on such a list. But, once in a college, one should explore the payment options.
Found this list from a quick Google search I just did from Forbes:
âNote that there are likely other schools that donât add a surcharge for tuition payments with a credit card. Check with your institutionâs financial department or reach out to the bursarâs office to find out your schoolâs policy.â