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June 4, 2019
Question

Is a coverdell ESA account tax exempt if used on education expenses I.e Student loans? i thought it was but my refund dropped nearly $500 after i entered the info in.

  • June 4, 2019
  • 1 reply
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1 reply

KrisD15
June 4, 2019

It is tax exempt if used for education expenses for the beneficiary. Paying tuition qualifies, paying student loans does not. 

CLICK HERE for IRS Pub 970 Education Credits

CLICK HERE for TurboTax information on Education Credits

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April 28, 2020

Thank you