My college student son lives off-campus and is not enrolled in a college meal plan. I know I can use 529 funds to pay for his food. The problem is it is too big a pain to save receipts for every grocery or restaurant purchase. Am I allowed to estimate his food expenses based on the the posted yearly off-campus Living and Indirect Expense Allowances for his college, which is $18,144.00? I think it is reasonable that 1/3 to 1/2 of this amount (about $8K) can be considered food (versus housing.) Can I just withdraw $8k from the 529 for this? Or is this risky without receipts? I suppose I could use credit card purchases categorized as food or groceries, but he buys a lot with cash.
As for housing costs, he lives in an off-campus house I purchased as an investment. His housemates pay me rent. This was cheaper than living in the dorm. I think it is too complicated to try to use 529 funds to pay for utilities or mortgage (especially since I bought the house with cash from a HELOC on another property) but let me know if anyone thinks otherwise.
Thanks.
