529 Plan disribution and rent payment.f the

[Mike1357]

Hi, my son had used a small part of his 529 distribution to pay for about 4 months of his off-campus rent  ( I paid his rent for the rest of the time). Now I have an excess of the distribution not reflected in 1098T. I understand that I can claim this as room and board expense. Turbotax asks to put his room and board expenses, do I put the amount used from 529 Distribution, or the whole year's (12 month) expense (mostly paid by me)

Thank you for your help

[DavidD66 · Accepted solution]

You can put either one.  If you used all of the 529 proceeds on qualified expenses, putting more than the 529 distribution will have no affect on your tax return.

[Mike1357]

Thank you for your reply. Using total cost of housing changed my son’s federal return and qualifies him for educational credit. What to make sure that is ok to do it.

thank you.

[DavidD66]

It should be OK.  Although room and board does not qualify for the education tax credits, if you consider the 529 plan funds having been used to pay room and board (a qualified expense for  529 plan use) and then tuition and fees can be considered as having been paid using non-529 plan funds, in which case they would qualify for the education tax credits.