The exclusion is allowed for:
- Contributions that you make to an FESA owned by you or jointly with your spouse.
- Contributions you make to an FESA owned by your child or stepchild if your child or stepchild is a Montana resident. It does not matter if the designated beneficiary of the account is:Earnings on the account to the extent that, when distributed, they are used to pay for qualified higher education expenses.
- The contributor’s adult child or step-child;
- A grandchild or other relative of the contributor;
- Related to the account owner; or
- A resident or nonresident.
You can only claim the exclusion for the tax year the contribution is made.
Qualified higher education expenses include:
- Mandatory fees
- Books, supplies, and equipment required for enrollment or attendance
- Certain room and board costs