529 Plan Distribution for off campus rent

[manolokolo]

The college lists a combined total Cost of Attendance (COA) for room and board.  Can I utilize that entire amount for rent for the purpose of determining the nontaxable portion of 529 distributions or do I need to allocate a portion to food?

[Bsch4477]

Qualified room and board costs can include both on- and off-campus housing costs, as long as they were incurred during an academic period during which the student is enrolled or accepted for enrollment in a degree or certificate program or another program leading to a recognized education credential.

[Hal_Al]

Q.   Can I utilize that entire amount (combined total Cost of Attendance (COA) for room and board)   for rent for the purpose of determining the nontaxable portion of 529 distributions?

A. Yes.

Q. Do I need to allocate a portion to food?

A. No. As long as your total for food and shelter do not exceed the school's COA, you may count all your expenses without allocating between "room" and "board" (up to the COA amount).  Since the school doesn't break it down, you don't have to either. 

[lecach]

What if the school DOES break it down? My son's school lists the housing and food separately on the Cost of Attendance. My sons rent is a bit higher than the housing estimate and the food is quite a bit lower. Can I just use the total lump sum of Housing and Food to pay those bills or do I have to break it down?

[Hal_Al]

Q. What if the school DOES break it down? 

A. Then you have to have to break it down too. 

[manolokolo]

Thank you!

Quick follow-up.  The school lists a cost of attendance for students living in the dorm and off-campus. The cost of attendance for room and board is higher for students that live in the dorm.   I assume if my student is living off campus, I must utilize the off-campus room and board allowance in order avoid taxable 529 plan distributions?  In other words, i cannot use the allowance for students living in the dorms since my student is living off-campus.

[Hal_Al]

 Q. I assume if my student is living off campus, I must utilize the off-campus room and board allowance in order avoid taxable 529 plan distributions? 

A. Yes.