Questions arise as to Room and Board (R&B) as a qualifying 529 expense for a student living at home. I understand that such expenses are allowable up to the college's R&B in its Cost of Attendance (COA). The college's COA R&B for a student living at home with his parents $5500.
The question arises as to actual allowable costs for such student and how to document them. It would seem appropriate that a proportionate share of the families groceries and utilities would be allowable and the gross amount documented by an annual credit card summary.
It has been it suggested that the parents could charge the student rent to have an additional qualifying expense. It would appear this would result in taxable income to the parents. Can this be accomplished without generating taxable income to the parents.
What other costs could be considered qualifying costs for the student? For example, proportionate maintenance on the residence? Other costs?
Any advice wouldbe appreciated.
