Hahn1040 Posted April 8, 2020 Report Share Posted April 8, 2020 New client took $26,000 distribution from son's Coverdell Tuition and fees paid in 2019 were $11,000. They had a few hundred dollars of other qualified expenses: books, computer, internet. Financial advisor had told them that they could take distribution based on expenses they had paid over the past three years. Trying to come up with additional qualified expenses paid in 2019. Student lives at home . I recall having read something about being able to use some part of living at home for room and board. I cannot find where I read it to see under what circumstances and how much could be allowed as qualified. Does any one here have a reference? I would really appreciate any input here! Thanks so much! Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 8, 2020 Report Share Posted April 8, 2020 Here is a link I found which does mention expenses for room and board for a student living at home. I believe you have to get from the school their budgeted amount for your records to use this option. I did one last year that was similar. https://www.savingforcollege.com/article/using-your-529-plan-to-pay-for-room-and-board 1 Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted April 9, 2020 Author Report Share Posted April 9, 2020 thank you so much. That is great info Do you (or anyone out there) have an IRS code source for this? I would like to see what the code actually says about it. does the student have to pay the parents rent to qualify? Does he have to buy his own groceries so that he has his personal receipts? Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 9, 2020 Report Share Posted April 9, 2020 No, I don't have the code handy but the client that used this, I believe, has it in the documents. I will look a bit later. Just starting virtual Maunday Thursday services. No foot washing this year. As I recall, no money has to change hands but will get back to you. I believe the idea is that the school determines the equivalent value that would be paid if on campus and you have to use that. You can't use a made up number. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted April 9, 2020 Report Share Posted April 9, 2020 Here you go https://www.savingforcollege.com/article/using-your-529-plan-to-pay-for-room-and-board Note the second paragraph "and for students who live off campus with their parents or other relatives." So I recommend contacting the college at issue and asking for this information and perhaps they will have the cite. 1 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 9, 2020 Report Share Posted April 9, 2020 Some college websites have the housing costs plus the % of housing costs to use for off-campus students. 2 Quote Link to comment Share on other sites More sharing options...
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