How to use funds from a 529 plan when student lives at home?

[hcmohr]

<p>I am a parent of a student recently admitted to a 4 year school. I have enough saved for his tuition and I am also planning to get tax credits. I researched and I see that Room and Board expenses based on the school's budget can be paid from the 529. This is if student leaves off-campus and it is paid directly to "other landlord" and food to a grocery store. But I am not able to find out if the student lives at home, can he pay a parent as "other landlord"?, I mean can we use funds from the 529 to pay for living expenses at home. Food expenses seem to be OK if you pay the grocery store and you don't go over the limit... Any one?</p>

[annoyingdad]

<p>Where are you seeing the info about paying directly to a landlord or grocer etc.?</p>

<p>This is what Chapter 8, page 56 of IRS Pub 970 says:</p>

<p>

3. Expenses for room and board must be incurred by
   students who are enrolled at least half-time. The expense
   for room and board qualifies only to the extent
   that it is not more than the greater of the following two
   amounts.
   a. 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.
   b. The actual amount charged if the student is residing
   in housing owned or operated by the eligible
   educational institution.

</p>

<p>b. doesn’t apply because the student isn’t living in university owned or operated housing. If you can’t find how much a. is for commuter students, as opposed to off-campus students, on the school’s website, I would contact the university for that amount.</p>

<p><a href=“http://www.irs.gov/pub/irs-pdf/p970.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p970.pdf&lt;/a&gt;&lt;/p&gt;

<p>Here’s a thread from last May on the same subject:</p>

<p><a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/1509930-529-withdrawal-room-board.html[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/1509930-529-withdrawal-room-board.html&lt;/a&gt;&lt;/p&gt;