COA school year vs tax year

[Dan_2022]

My daughter attended a university in 2021, taking over half time credits in winter term 2021, spring/summer term 2021, and fall term 2021. When identifying qualified 529 education expenses, I know you can count off-campus room & board (rent, utilities, food) up to the amount of the cost of attendance (COA) that the university reports to the Dept of Education. I have these figures from the university. The 2020-2021 COA is $6524. The 2021-2022 COA is $6882.

My question is what number to use. The academic year runs from Sept-Aug, while the tax year runs from Jan-Dec. My daughter's winter and spring/summer term falls within the university's 2020-2021 school year, while her fall term falls within their 2021-2022 year. For 2021 tax purposes, which number do I use? Or do I use a prorated number (8 months @ $6524 = $4349, 4 months @ $6882 = $2294, therefore up to $6643 can be used as qualified expenses)?

Thanks for any clarity you can provide! I want to get this right the first time. So confused dealing with academic year vs tax year!

[Hal_Al · Accepted solution]

 Prorate,  therefore up to $6643 can be used as qualified expenses.

[Dan_2022]

Perfect! Thank you so much!