A qualified distribution is a withdrawal of funds from a 529 plan that are used to pay for qualified expenses. Qualified distributions are tax-free.
Qualified higher education expenses for a 529 plan include tuition, fees, the cost of required textbooks, supplies and equipment, room and board costs (if the student is enrolled at least half-time), a computer, peripherals, software and internet access. It also includes special needs expenses. It does not include transportation, dependent care costs or personal/miscellaneous expenses.