Jumpstart Savings Account distributions must be used for the Designated Beneficiary’s qualified expenses in a qualifying occupation, profession, or trade, to qualify for state tax benefits. Qualified expenses may include the expenses described below.
Tools, Supplies, and Equipment
The purchase of tools, equipment, or supplies used exclusively in the Designated Beneficiary’s qualifying occupation, profession, or trade are qualified expenses. Need a pair of channel locks or a table saw? What about boots or other personal protective equipment? How about an air compressor or concrete mixer? These are just a few examples of how a Jumpstart Savings Account may be able to work for you.
Licensing and Certification Fees
Licenses and certifications are a requirement for several trades and vocations and there may be fees associated with them. Does your job site require OSHA 30? Do you need your Class A CDL? You may be able to use your Jumpstart Savings Account to help cover the costs for industry-required licenses and certifications needed in the Designated Beneficiary’s qualifying occupation, profession, or trade and claim state tax benefits.
Business Start-Up Costs
Starting a business is an exciting but expensive journey. Your Jumpstart Savings Account may be able to offset some initial costs for a business in which the Designated Beneficiary practices a qualifying occupation, profession, or trade. Need office space or inventory? In the market for a service truck? How about marketing materials? A Jumpstart Savings Account may be able to help the Account’s Designated Beneficiary purchase the things needed to launch a new business.