Q. Where in TurboTax (TT) will I add in the amount I deduct from the 529 to pay for groceries?
A. In the education expenses section. You will get a single box to enter one number for total room and board (R&B) paid. To get the screen to enter Room & Board, answer yes when asked if you have book expenses. Also, enter the 1099-Q for the 529 plan distribution before entering educational expenses, including R&B (TT will not give you the R&B entry box unless you need it for a 529 or ESA distribution).
Off campus rent and food are eligible expenses for a 529 distribution, but the amount is limited to the lesser of your actual cost or what the school charges on campus students for R&B (technically the schools "allowance for cost of attendance" for financial aid purposes).
