For distributions occurring this year, the 1099-Q form will be sent by January 31st of next year. If the beneficiary or the school received the 529 funds, the beneficiary will receive the 1099-Q. If the owner received the funds, the owner will also receive the 1099-Q. Virginia529 determines where to send the 1099-Q tax form based on where the 529 funds were sent. The funds should be sent to whoever is actually paying the expenses.
Directly to the beneficiary of the account. Qualified distributions from 529 accounts can only be made in one of three ways: This is the same as for groceries: You can use 529 funds to reimburse yourself for grocery costs when not on the meal plan, but you cannot send a 529 distribution to the grocery store. It is also important to note that, even though you can use 529 funds to reimburse for off-campus housing costs, the funds cannot be sent directly to the landlord or property manager. Your room and board 529 reimbursement is limited to the greater of the school’s room and board allowance or the actual amount the student would pay for on-campus housing.Īnother stipulation is that the student must be enrolled at least half-time for off-campus housing costs to be considered a qualified distribution. For example, here is the University of Virginia’s estimated cost of attendance page for 2018-2019. You should be able to find this number on the school’s website or by calling their financial aid office. The precise value of the room and board allowance is specific to each school and each school year. This budget costs can include rent, utilities, and food. 
All off-campus housing expenses that fall within the budget qualify for 529 reimbursement. However, housing is one of many expenses that are subject to a reimbursement limit.Įssentially, the school sets a budget or allowance for room and board, referred to as the cost of attendance. In general, you can use 529 funds to pay for your student’s off-campus housing costs. Can I use funds from the 529 account to pay for off-campus housing expenses?
This year, she has an apartment with some friends. Last year, my daughter lived in the dorms.
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