Off-Campus Board (food) Costs

[bradleyb15]

My son lives off campus and I gave him money every month for food while he was enrolled in classes. For tax purposes, can I use the college's board (food) component of their Cost of Attendance in the "Room and Board" line in Turbo Tax? Or, can I only include food expenses when we have receipts to document he used the money to buy food?

For example, if the board component of the school's Cost of Attendance is $2,000 for the Fall 2021 term, can I include $2,000 in the "Room and Board" line in Turbo Tax if I gave my son $2,000 or more to purchase food? Or, do I need to be able to show receipts that food was purchased up to the $2,000 figure from the Cost of Attendance, and then I can only claim the total of the receipts?

[KrisD15 · Accepted solution]

You do not need to have food receipts. 

The amount you claim for Room and Board costs cannot be more than what the school would charge. 

Therefore, the amount you claim for the "food" portion can only be the difference between what you paid for housing and the total "Room and Board" the school would have charged total. 

In other words, if the school charges 10,000 room and board, but you only pay 7,000 for off-campus rent, you have up to 3,000 for meals. 

You should keep a log of what you gave the student for meals, but you do not need to keep a detailed list of the food purchase or receipts. 

ROOM AND BOARD EXPENSES CANNOT BE USED TOWARDS AN EDUCATION CREDIT, 

This is considered an "Other Qualifying Education Expense".

These type expenses may be used to offset 529 distributions or can be allocated to scholarships.

If to offset a distribution, that distribution becomes tax-free. 

If allocated to scholarships, the student would need to claim that amount as income. 

Other qualifying education expenses include:

• Tuition and fees.

• Room and board.

• Books, supplies, and equipment.

• Other necessary expenses (such as transportation).

The cost of room and board qualifies 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;"

IRS PUB 970