My daughter is in college; lives in an apartment. Regarding 529 allowable expenses, can I use the colleges usual expense or do I have to save every grocery store receipt.

Colleges report a dollar amount to the IRS listing the allowable amount for room and board that can be reimbursed from our 529 account. My daughter just moved into an apartment. So, can I just use the amount for room and board as reported to the IRS by my daughters college? Or do I have to have her save each and every grocery store, coffee shop, and restaurant receipt to justify the 529 reimbursement?

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1 Best answer

Level 15

Jun 6, 2019 8:04:22 AM

I'm of the opinion that you can safely use college allowance for that. Although the actual wording is actual expenses "up to" that amount.

The wording also specifies the room & board amount the college uses to calculate student aid; which is not necessarily the amount it actually charges students for room & board.

Level 15

Jun 6, 2019 8:04:22 AM

I'm of the opinion that you can safely use college allowance for that. Although the actual wording is actual expenses "up to" that amount.

The wording also specifies the room & board amount the college uses to calculate student aid; which is not necessarily the amount it actually charges students for room & board.

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My daughter is in college; lives in an apartment. Regarding 529 allowable expenses, can I use the colleges usual expense or do I have to save every grocery store receipt.