How to avoid a tax problem if you get a refund from your college for spring semester

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If you got a refund from college for room and board or other expenses, consider yourself lucky. But beware of the potential tax bite.

As colleges and universities across the U.S. remain closed in an effort to slow the spread of Covid-19, refunds for meals or housing have varied from school to school.

Still, when it comes to what you should do with a reimbursement check, there is little discrepancy.

If that money was originally paid out from your 529 college savings plan, you should re-contribute those funds to the same qualified tuition program, according to the College Savings Foundation.

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