529 reimbursement

Forum|Forum|1 month ago
August 12, 2026
1 reply
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If the student lives off-campus how do we account for day-to-day expenses for 529 reimubursement. Do we need to save each and every receipt of food, etc? Or can we just request a lump-sum without worrying about saving receipts.

Best answer by Terri Lynn

When a student lives off-campus, you will not need to save every single receipt to request reimbursement, however, you also cannot just take out a lump sum amount without any paper trail backup.
Here are some general rules for Off-campus living and day to day food expenses:

The IRS uses the individual university’s room and board allowance that is published in their official Cost of Attendance that is provided on their financial aid website. Your total submitted expenses for reimbursement for rent and food must fall below that amount.
Most 529 administrators will not ask for receipts when you request a reimbursement to cover these expenses.

Since 529 distributions/reimbursements are self-certified, you will want to keep the following items for your records in case the IRS were to ask you to substantiate these expenses:

For Rent: A copy of the signed lease agreement and receipts or statements showing the payments.
For Food and Other Day to Day expenses: I would suggest dedicating one specific credit card or bank account to keep track of things like groceries and utilities, as your monthly statement can serve as a complete itemized record of expenses.

For more information see:

Terri Lynn

Answer

Employee Tax Expert

The IRS uses the individual university’s room and board allowance that is published in their official Cost of Attendance that is provided on their financial aid website. Your total submitted expenses for reimbursement for rent and food must fall below that amount.
Most 529 administrators will not ask for receipts when you request a reimbursement to cover these expenses.

Since 529 distributions/reimbursements are self-certified, you will want to keep the following items for your records in case the IRS were to ask you to substantiate these expenses:

For Rent: A copy of the signed lease agreement and receipts or statements showing the payments.
For Food and Other Day to Day expenses: I would suggest dedicating one specific credit card or bank account to keep track of things like groceries and utilities, as your monthly statement can serve as a complete itemized record of expenses.

For more information see:

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