Coverdell issues 2011

[Gary2]

Was the IRS answer in response to the "expected" rules, or to the "finalized" rules, for 2011?

It was simply stated that way on one of the slides for the 2011 tax update plenary session. This was one of the few tidbits at a session that was incredibly boring, partly because it was read dryly, and partly because the bulk of it was old news. So there wasn't any more clarification than that.

[FEDUKE404]

Clarification needed

I just got back from the Atlanta IRS forums, where the answer to your question was given as no, they are no longer eligible expenses for qualified tuition programs. No citation, though.

Was the IRS answer in response to the "expected" rules, or to the "finalized" rules, for 2011?

FE

[Gary2]

I just got back from the Atlanta IRS forums, where the answer to your question was given as no, they are no longer eligible expenses for qualified tuition programs. No citation, though.

[FEDUKE404]

Does anyone have current information/link to the rules in place for Coverdell distributions for tax year 2011 ?

The best I have been able to find includes a lot of "these changes may occur unless..." etc, and the currently available Pub 570 is still for tax year 2010.

One issue to be resolved is whether purchase of computer/software/etc for a college student can still be covered by a Coverdell withdrawal. I assume it could be used for AOC (but not both) however parent needs to draw down funds in an existing Coverdell account. IF there is taxable income from the withdrawal, whose return does such show up on?

Also, is the forthcoming 1099-Q issued in the name of the student or in the name of the owner of the underlying account (parent)?

Have a pleasant 4th.

FE