Do I need to provide proof of higher education expenses that were paid from an early withdrawal from an IRA? Can I count off campus housing as an expense?

[donnajenn]

I am not claiming any of my son's higher education expenses for education deductions, however I would like to use them to offset the additional taxes from an early IRA withdrawal, used to pay the expenses.  I have receipts for all expenses.  Do I need to provide these receipts when filing?  I read in Publication 970 that I could count customary cost of room and board, but can I count housing costs for living off campus?

[Coleen3 · Accepted solution]

You do not need to provide proof at filing to take the exemption.

Please see below for what is allowed as an education expense.

https://ttlc.intuit.com/replies/5895507

[donnajenn]

Thanks, but according to the IRS Publication 970, I can count room and board up to the amount the university would charge for on campus housing.   I appreciate your answer!

[Coleen3]

Pub 970 refers to Education Credits, not IRA distributions. You can only tax the exception for amounts above. If you are also taking an Education Credit, then that is another issue with its own set of rules.

[donnajenn]

I am not claiming education credits.  In Pub 970 topic 9 it addresses IRA Distributions, including housing.

[Coleen3]

You are correct.
Qualified education expenses. For purposes of the
10% additional tax, these expenses are tuition, fees,
books, supplies, and equipment required for enrollment or
attendance at an eligible educational institution. They also
include expenses for special needs services incurred by
or for special needs students in connection with their enrollment or attendance.
In addition, if the student is at least a half-time student,
room and board are qualified education expenses.
The expense for room and board qualifies only to the
extent that it isn't more than the greater of the following
two amounts.
1. The allowance for room and board, as determined by
the eligible educational institution, that was included
in the cost of attendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student.
2. The actual amount charged if the student is residing
in housing owned or operated by the eligible educational institution.
You may need to contact the eligible educational institution for qualified room and board costs.

[abr1]

Can anyone point to anything other than the actual language in Pub. 970 (which I do not believe is even close to being definitive on the question asked in this thread) where it is ok to include the actual cost of dormitory living as a qualified educational expense where the student is living in private off campus housing, for purposes of the 10% early withdrawal additional tax?