529. and letting IRS know about expenses for room and board
Hi I saw you other post so I am hoping you are familiar with this situatio,
Every year my kids are in school I triggers an automated audit with the IRS that is resolved in my favor a year later. It is simply triggered by the fact that there is no place , no form, to let the IRS know the Qualified education expenses of ROOM AND BOARD that counts towards the 529. I know that room and board do NOT count as as QEE for a AOA.
To make it simple, here is an example
2023 $4000 in tuition and fees for Undergrad at SUNY ALBANY
4000 spend on dorms and meals at SUNY ALBANY
4000 taken out in 2023 from a 529 to use for dorms and meals at SUNY ALBANY
The IRS takes the 4000 QEE, and deducts the 4000 from the %29 withdrawal , thinking that the only expenses it goes towards is tuition. There is no way to tell the IRS its towards tuition and fees. That leaves 0 left as QEE and a audit claiming I had no right to claim a credit for the AOA
Do you knwo if the IRS finally fixed this issue, or if there is a way to alert them to prevent the automated audits that are very time consuming and stressful?
