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Are expenses qualified for Coverdell if student is studying abroad internationally in a school preapproved by her state school?

My daughter is studying for one semester in Spain through a "travel abroad" program offered by her state school. The courses were  pre-approved by her school and there are a group of kids travelling to take advantage of this international travel program. The  school in spain is not on the Department of Education's list of schools approved for federal aid. I don't care about the AOTC since she has enough tuition expenses (>$4K) for the other semester which will be attendend in-state.

 

Can  she take Coverdell distributions tax-free based on these International expenses (room/board/tuition/fees)? Does it matter who we technically pay the bill to since the classes were approved and set up thru her program?

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KrisD15
Expert Alumni

Are expenses qualified for Coverdell if student is studying abroad internationally in a school preapproved by her state school?

 

"If the U.S. home college or university is eligible for Title IV federal student aid, the study abroad program will be eligible as well, provided that the classes are accepted for credit by the U.S. institution."

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2 Replies
KristinaK
Employee Tax Expert

Are expenses qualified for Coverdell if student is studying abroad internationally in a school preapproved by her state school?

If the U.S. home college or university is eligible for Title IV federal student aid, the study abroad program will be eligible as well, provided that the classes are accepted for credit by the U.S. institution.​​​

**Say "Thanks" by clicking the thumb icon in a post
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KrisD15
Expert Alumni

Are expenses qualified for Coverdell if student is studying abroad internationally in a school preapproved by her state school?

 

"If the U.S. home college or university is eligible for Title IV federal student aid, the study abroad program will be eligible as well, provided that the classes are accepted for credit by the U.S. institution."

Reference

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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