Q. f the college lists separate COA* for room and board does that limit the tax-free reimbursement for each?
A. Yes.
Q. Would the distribution of $8,000 for rent alone all be nontaxable? or only up to $5757?
A. Only the $5757
Q. No reimbursement is sought for the food?
A. You should use the 529 plan to reimburse food cost. Normally, I advise not to bother with receipts, just use the school's meal plan cost or allowance for attendance. The IRS will, most likely, accept that. But, $5757 seems high (my local state college is half that). Use the school's "meal plan" charge, if lower.
*529 money can be use for off campus living, but you are limited to the lesser of your actual costs or the school's "allowance for cost of attendance" (COA) (basically what on campus students pay for Room & Board).
The student must be half time or more.
