The 529 plan rules for 2019 tax returns are contained in the 8. Qualified Tuition Program (QTP) section of IRS Publication 970 Tax Benefits for Education. At that link, you'll find this definition of an Eligible Educational Institution and Qualified Higher Education Expenses:
Within the Qualified Higher Education Expenses section is the definition of room and board costs that qualify. Under this test, the room and board for an online student may not qualify, unless housing is available from the educational institution:
"3. Expenses for room and board must be incurred by students who are enrolled at least half-time (defined below).
The expense for room and board qualifies only to the extent that it isn't more than the greater of the following two amounts.
- The allowance for room and board, as determined by the school, that was included in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.
- The actual amount charged if the student is residing in housing owned or operated by the school.
You may need to contact the eligible educational institution for qualified room and board costs."
Because your son is not your dependent, he will report his education expenses and the 1099-Q on his tax return, not yours.
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