Taxpayer had a ESA account for daughter who is now going to college. Problem is in 2011 the parent withdrew all funds in the ESA which is more than was needed to pay for daughter's tuition for 2011. Put funds in a bank account to pay for future years. First time I've dealt with ESA withdrawals and in researching this it says funds withdrawn but not used for education expenses that year are taxable. I've also found that qualified expenses include transportation. Just wondering what all falls into this catagory? How would I figure cost of driving back and forth to school? Use standard mileage rate? Not sure how this works. Daughter lives at home and attends a community college. Any help would be appreciated.
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