How college students can avoid a tax penalty

BURLINGTON, Vt. (WCAX) A tip for college students to help avoid a tax penalty.

Many colleges, including several in our area, are reimbursing students for tuition or room and board because the semester was canceled due to COVID-19.

According to VSAC, students can avoid paying taxes on that reimbursement by contributing that money to their 529 college fund.

But there is a deadline. You must do it by July 15.