529 Payments & Medical Deductions
529 Plan Assets Toward Tuition Payment
Per federal tax legislation related to 529 plan accounts, "Account owners can use assets to pay for qualified K-12 expenses up to $10,000 per year, per student."
The AIM Business Office accepts a check from your 529 Plan toward tuition with a signed letter stating that the source of the funds was from your 529 Plan. In the event that the tax authorities subsequently require confirmation from AIM for the payment made by you, we will submit copies of the relevant documentation that was provided to us by you, including copies of your checks sent to us for payment of tuition.
Please note, 529 payments can only be applied to current fiscal year tuition. AIM's fiscal year begins on July 1st and ends on June 30th, so 529 payments cannot be processed until after July 1st for the upcoming school year.
We strongly encourage you to consult a qualified tax advisor prior to making payments from your 529 Plan. They will be able to advise you appropriately on the procedures involved.
Tax-Deductible Medical Expenses
Payments to AIM may be considered tax deductible under Special Education medical expenses as a federal itemized deduction under Section 213 of the Internal Revenue Code. AIM cannot provide advice on taking this deducation. For further information consultant a qualified tax advisor or tax lawyer. IRS information about medical care expenses can be found here.
We're pleased that Finalsite, our school web communication platform, highlighted AIM and CFO Sid Ghosh in their blog about the new tax law allowing individuals to use 529 assets toward tuition.