If you thought your 529 account only covers tuition, think again. “529 plans cover a wide variety of education-related expenses, including tuition, mandatory fees, books, computers, certain room and board costs, and even equipment that may be required for enrollment or attendance,” says Peg. You generally won’t pay federal and state taxes on the money you withdraw from your account when you use it for these expenses, according to IRS.gov. Most 529 accounts can also cover an off-campus apartment if your future freshman isn’t living in a dorm, but the cost of off-campus housing must be comparable to the on-campus costs. Check with your 529 provider if your student plans to live off-campus.