Class Digital Photography

1

Am I allowed to use my education IRA to buy a digital camera if I'm taking a Digital Camera Photography class?

And the class requires you have a digital camera.

Since it's "required" for your photography class, I would argue YES.

The Coverdell ESA (Education Savings Account) replaced the re-named Education IRA in 2002. The Coverdell ESA became a very attractive college savings vehicle for many people, including families that wish to save for elementary and secondary school expenses as certain K-12 expenses were added to the list of qualified expenses.

A child can receive tax-free withdrawals in any year, including years after 2010, to the extent that he or she incurs qualified higher education expenses (QHEE).Through 2010, tax-free withdrawals can also be taken from an ESA to pay for certain elementary and secondary school expenses. This includes tuition, fees, tutoring, books, supplies, and equipment incurred in connection with school (grades K through 12). It also includes any room and board, uniforms, transportation and supplementary items which are required or provided by the school. Finally, it includes expenses for the purchase of computer technology or equipment, or Internet access, used by the beneficiary and family during the years the beneficiary is in school.

Unless Congress acts, certain ESA benefits expire after 2010. K -12 expenses will no longer qualify, the annual contribution limit will be reduced to $500, and withdrawals will not be tax-free in any year in which a Hope credit or Lifetime credit or Lifetime Learning credit is claimed for the beneficiary.

Hope I nailed it for you!

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DISCLAIMER: While the information in this response was obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. The opinion voiced in this answer is for general information only and it shall not be construed as tax, legal, or investment advice for any individual. Questioners are urged to consult with their professional advisers before making any decisions regarding their finances

Bradley Mann, EA, CFP®, BCE
Enrolled Agent | Admitted to Practice before the IRS
Certified Financial Planner™ Practitioner

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