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We have a 529 plan for our daughter who is a junior in college.

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She wants to move off...
We have a 529 plan for our daughter who is a junior in college. She wants to move off campus. Can we pay her rent, etc from the fund?
Submitted: 9 years ago.Category: Tax
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Answered in 14 minutes by:
11/4/2008
Tax Professional: Wendy Reed, Enrolled Agent replied 9 years ago
Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3,346
Experience: 15+ years tax preparation and tax advice.
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Hello there,

 

The 529 plan is versatile in the types of expenses that it can be used for, such as computers, books, etc. As far as room and board is concerned, "qualified education expenses" (definition for 529 plan) can include reasonable cost of room and board for a beneficiary who is at least a 1/2 time student. However, there is a limitation, and the amount for room and board cannot be more than a certain amount (details on page 49 of IRS pub 970: http://www.irs.gov/pub/irs-pdf/p970.pdf )

 

Here are some links to more information about non-campus or off-campus housing and how to determine the amount that can be used as a "qualified education expense"

 

http://www.aboutchet.com/faq/requirements.html

 

http://www.efs529.com/ieee/Frequently_Asked_Questions.cfm

 

 

Wendy Reed
Wendy Reed, Enrolled Agent
Category: Tax
Satisfied Customers: 3,346
Experience: 15+ years tax preparation and tax advice.
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