Could You Pay for Remote Learning with an Education Savings Account?

Not only can CESAs cover school-related expenses for college students, but elementary and high school expenses are also eligible, according to IRS Publication 970 .

Which Distance-Learning Expenses Can You Cover with a CESA?

To be eligible, education-related expenses must be “expenses required for the enrollment or attendance of the designated beneficiary at an eligible educational institution,” the IRS states. This includes elementary, secondary, and higher education institutions.

Qualifying expenses may include tuition, books, and supplies. Do the eligible expenses extend to supplies needed – such as a computer or internet connection – when education from an eligible institution is done remotely? Here’s what IRS Publication 970 says:

The purchase of computer or peripheral equipment, computer software, fiber optic cables related to computer use, or Internet access and related services is a qualified elementary and secondary education expense if it is to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is in elementary or secondary school. (This doesn’t include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.)

The same guidelines also apply to postsecondary expenses.

[Related: Coverdell Education Savings Account FAQs]

More information can be found in IRS Publication 970. As always, it is best to consult your tax advisor or other financial professional before making any decisions.