topic 529 Withdraw Max in Get your taxes done using TurboTax

529 Withdraw Max

TaxHelp1234 — Tue, 24 Feb 2026 07:52:58 GMT

My child is living in off campus housing at university. The rent is much higher than the living expense published by the university. There are some expensive housing options on campus, cost of these options will be higher than the one published by the university. How much money can we take out from 529 for the off campus housing? The high end of on campus housing or the living expense published by the university?

Re: 529 Withdraw Max

Anonymous_ — Sat, 07 Oct 2023 13:52:30 GMT

@Hal_Al ?

Re: 529 Withdraw Max

Hal_Al — Sat, 07 Oct 2023 14:23:10 GMT

Q. How much money can we take out from 529, tax free, for the off campus housing? The high end of on campus housing or the living expense published by the university?

A. The living expense published by the university.

From Publication 970:

"The cost of room and board qualifies (for a 529 plan distribution) only to the extent
it isn't more than:
• 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; or
• If greater, the actual amount charged if the student is
residing in housing owned or operated by the eligible
educational institution."

I interpret that to mean: if your student actually lived in the "expensive housing options on campus", you could use that higher number. But, since he is off campus, you are restricted to the allowance for attendance.