for 529 distributions, when living off campus, you can not claim more for room and board than you would pay living on campus. So if the student was living on campus, what would you be paying? The highest cost one? Or one below that? Same thing for the meal plan. That is what you can claim.
There is one exception that allows you to claim the actual costs of living off campus, if you qualify.
If the school does not offer on campus housing, or if the student has a letter from the college informing them that on campus housing is not available, then you can claim actual costs of living off campus. Note that a letter is needed for each semester the student is enrolled in.
For the "board" part, if the school does not offer meal plans, then you can claim actual costs. Take note that for both room and board the costs incurred must be reasonable. So no $5000/mo penthouse suites or steak and lobster for lunch and dinner every day. 🙂
Also take note that room and board costs are not deductible if the student is not enrolled. So if they are renting accomodations off campus and do not enroll during the summer semester, the room and board for those 2-3 months are not deductible expenses from the 529 distribution.
