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Level 1
posted Jun 6, 2019 6:27:13 AM

My son is attending school in the area and living at home. Where can I find information on what expenses we can cover from the 529 account?

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1 Best answer
Level 15
Jun 6, 2019 6:27:14 AM

Where? Google something like “529 room and board living at home” and you’ll get multiple references.

The bottom line is:

  You may exclude your actual cost or the school's aid allowance, which ever is less. You may need to check with your child’s school to learn the room and board allowance for students living at home with parents. It’s likely to be less than off-campus students living independently.

You’ll also find similar language in IRS pub 970, chapter 8. https://www.irs.gov/pub/irs-pdf/p970.pdf

2 Replies
Level 15
Jun 6, 2019 6:27:14 AM

Where? Google something like “529 room and board living at home” and you’ll get multiple references.

The bottom line is:

  You may exclude your actual cost or the school's aid allowance, which ever is less. You may need to check with your child’s school to learn the room and board allowance for students living at home with parents. It’s likely to be less than off-campus students living independently.

You’ll also find similar language in IRS pub 970, chapter 8. https://www.irs.gov/pub/irs-pdf/p970.pdf

Level 15
Jun 6, 2019 6:27:17 AM

Scholarships and grants are for tuition, books, and lab fees. That's it with no exceptions. (Though lab fees is rather broad)

529 funds can be used for scholarships, grants, lab fees *and* room and board. That's it with no exceptions. So if your college student is living at home, the room and board doesn't apply here.