Can a potential client lawfully use Section 529 funds to pay for my services?
There are many expenses directly related to college that are covered by 529 plans. Unfortunately, college advising services is not one of those expenses. The IRS is clear that tuition, fees, room and board, and books, computer technology or equipment required by the college attended are covered expenses. Its not worth the tax risk to pursue paying for college advising services with 529 money. Save the 529 for tuition and the other qualified educational expenses.
There are many expenses directly related to college that are covered by 529 plans. Unfortunately, college advising services is not one of those expenses. The IRS is clear that tuition, fees, room and board, and books, computer technology or equipment required by the college attended are covered expenses. Its not worth the tax risk to pursue paying for college advising services with 529 money. Save the 529 for tuition and the other qualified educational expenses.