529 Plans Cover Off-Campus Internet and Phone Bills

The College Savings Podcast with Fexingo: 529 Plans, Education Funding, and Student Costs · Jul 20, 2026 · 11m · transcript

Many families assume a 529 plan can only pay for tuition, room, and board. But the IRS also lets you use tax-advantaged 529 funds for internet service and phone bills when the student lives off campus. In this episode, Lucas and Luna break down the 'course-related' rule, explain how to document the expense, and walk through a real example: if your child pays $80 a month for Wi-Fi and $60 for a cell plan, those costs can be covered by the 529 up to the cost of attendance. They clarify what counts as a direct vs. indirect expense, warn about the tricky 'room and board' cap…