Did You Know that a 529 Savings Plan can be used to pay for a side hustle education?

I have a side hustle of photography. In order to help my business grow, I have to learn photoshop and lightroom so I can edit and cut down on the time it takes to send out photos. I have been watching some tutorials, and I can already tell this might be overwhelming. I want a course so I don’t mess up my photos and can learn how to edit. Then I priced some courses…<br><br>So I am thinking of taking a photo editing course. The course is $1,300, but I can get a certification if I pass. Then I priced some side hustle courses in photography. I found some courses for photography that I can get certified in that are priced at $1,000. I was like “wow this is a good price for certification!”. I was looking at other courses and found even more! I am at a point where I have to cut out the ‘wants’ from the ‘needs’. And I don’t want to be stuck in a forever debt. So I decided to ask my financial advisor about any options…<br><br>So I talked to my financial advisor and he told me I can use my 529 with some side hustles and that I would receive a tax deduction AND the money I earn would grow tax free! I sure as heck don’t want to end up like my side hustle friend….<br><br>I have a friend that I have a side hustle with. She is a photographer and her husband is a videographer. She has over 20k in debt because of courses she has taken for photography. I asked her about the courses and she told me, “you get certified for 2 years. It’s a side hustle, and you can always end up with more debt”. This side hustle is something I enjoy and she said this is where she went wrong. She priced herself too high, got too many courses for photography, and ended up in debt…<br><br>So this got me to thinking…<br><br>My 529 is for my kids. And with my 529, I can use it for a side hustle education. The money would grow tax free AND I would receive a tax deduction. I was like “wow, this is even better than a Roth IRA”! I started to do some research and here is what I found…<br><br>&#x200B;<br><br>**The IRS Defines "Qualified Education Expenses" Broadly**<br><br>The IRS defines "qualified education expenses" to include more than just college tuition. In fact, it includes expenses for **any course at an eligible education institution**. And this includes vocational schools, correspondence schools, online schools and other accredited institutions.<br><br>For example, you could use a 529 plan to pay for:<br><br>Medical device training courses<br><br>Aviation training<br><br>Real estate licensing courses<br><br>Language courses<br><br>Computer programming courses<br><br>Vocational training programs<br><br>Professional certification programs<br><br>Online trade schools<br><br>Professional degree programs, such as an MBA or law degree<br><br>**There's Only One Requirement: The Program Must Be Accredited**<br><br>The only requirement is that the program must be accredited. In other words, it must be recognized by an accrediting agency that's recognized by the U.S. Department of Education.<br><br>Also, the **program must lead to a recognized degree or certification**. For example, a medical device training program that culminates in a certification, **such as a software bootcamp with certification**, would qualify.<br><br>It's also worth mentioning that you don't necessarily have to be enrolled full-time to qualify. The IRS provides that you can use a 529 plan for **any course at an eligible educational institution.**<br><br>&#x200B;<br><br>**You Can Even Use the Money to Pay Yourself Back**<br><br>You can even use a 529 plan to pay yourself back for education expenses that you've already incurred. The IRS requires that you use the money within a **"reasonable time."** Exactly how long remains to be seen, but it's definitely worth considering if you've incurred education expenses recently.<br><br>&#x200B;