Internal Revenue Code Section 530(b)(3): Qualified Elementary and Secondary Education Expenses

26 U.S.C. Sec. 530(b)(3) | Congress | Existing statute

Section 530 is the Coverdell education savings account statute, and subsection (b)(3) defines the term "qualified elementary and secondary education expenses." As written, it covers expenses for tuition, fees, academic tutoring, special needs services for a special needs beneficiary, books, supplies, and other equipment connected with attendance at a public, private, or religious elementary or secondary school. It also covers room and board, uniforms, transportation, and supplementary items and services required or provided by the school, and the purchase of computer technology, equipment, or internet access used by the student and family during school years.

Why this matters: The federal Education Freedom Tax Credit statute (IRC Section 25F) references this definition to describe the kinds of elementary and secondary education costs that EFTC-funded scholarships may go toward, so schools and donors can see in the underlying text what expenses are contemplated.