Off-Campus Rental

[msbneb]

I've seen posts on how the rent can be entered in as room and board sections in Other Education Expenses. I was curious if the the only rent that can be entered as an education expense is  when she was actively enrolled as school.  The apartment complex  required a 12 month lease which includes the summer months when she was not taking classes.

Should these months be excluded?

[xmasbaby0]

Housing, room and board or rent are not qualified education expenses.

What are qualified education expenses for the American Opportunity and Lifetime Learning credits?

SOLVED•by TurboTax•1504•Updated December 20, 2021

These expenses qualify, as long as they are required to enroll in or attend a qualified educational institution:

• Tuition, if paid to the institution
• Student-activity fees, if paid to the institution
• Books, supplies, and equipment, if required to be purchased from the institution as a condition of enrollment or attendance (Lifetime Learning Credit)
• Books, supplies, and equipment, regardless of where purchased (American Opportunity Credit)

Fees paid for non-credit courses and sports (or similar activities) don't qualify unless:

• The course or activity is included in the student’s degree program, or
• The course helps the student acquire or improve job skills (Lifetime Learning Credit only)

These expenses are not considered qualified education expenses for either credit:

• Tutoring
• Housing, room and board
• Insurance, including student health fees
• Medical or dental expenses
• Transportation
• Entertainment, babysitting, and other personal expenses

Qualified education expenses paid on behalf of the student by someone other than the student (such as a relative), are treated as paid by the student. Qualified education expenses paid (or treated as paid) by a student who's claimed as a dependent on your tax return, are treated as paid by you.

[msbneb]

Tells me nothing about the question I asked but okay.  These do affect your return even if they aren't considered education expenses.  I can use money from a 529 account to pay for  room and board. Also it impacts Education credits.

[xmasbaby0]

Wish you would have mentioned a 529 in your original question.  That can change things.

[xmasbaby0]

 To use a 529 for rent paid for  a student living in an off campus apartment, the allowable amount is actual cost or the amount charged by the school for on-campus students; whichever is less.   Not sure about the year-round portion.  

Thoughts   @Hal_Al     ?

[msbneb]

It's an interesting topic since the school doesn't have sufficient housing and forces students off-campus to apartments. In years past they had treated some of them like on-campus apartments but they dropped that policy. The school has essentially becomes a commuter school.

[Hal_Al]

For a 529 plan distribution, you may only count room and board for the time   when she was actively enrolled at school. 

The question is probably academic because you are limited to the lesser of your actual cost or the school's "allowance for attendance", which is almost always lower.