Should I keep all records of my room and board expenses if those expenses are lower than the one on the college cost of Attendance. The University has a room and board expenses $13179 for 3 terms or $4393 for term. I am living off the campus (renting a house with 2 classmates). My rent, utilities and food expenses are about $4100 for term. It is my understanding that IRS won't ask about receipts if I withdraw less than cost of room and board as listed under college cost of attendance. Is it true?
It is hard to keep all records since I have shared expenses with my roommates such as food, utilities, grocery shopping when one of us paying for the whole purchase and 2 of us "reimburse" it
You only risk an audit if what you claim for R&B is in excess of what you would pay if you lived on campus. A few things to be aware of though.
If you are not enrolled full time during the summer semester, then you are not living there and paying rent/food for the primary purpose of attending school . So 529 funds used during said time for R&B would be an unallowed expense and therefore taxable income to the benificiary recipient of those funds.
Generally, for the summer semester the best a student can do class-wise is two classes. But if the student is enrolled in just one class for that semester, then as far as the college is concerned they are enrolled full-time for that semester. Remember, its the college and not the IRS that defines what constitutes "full time".
I enrolled as a full time student, but won't take summer term. I will, however pay rent and utilities for 12 months, but my total expenses would be less than if I live on campus for 3 semesters
So, if my actual expenses for rent, utilities and food are less than if I lived on campus for the year, IRS won't ask me about receipts? Is it right?