You cannot reimburse more than the allowance for room and board regardless of your expenses.Ģ. The IRS only states two limitations on the amount of room and board you can reimburse:ġ. What if Off-Campus Expenses are Less than the COA – Can I Still Claim the COA Amount? You can find out both the on-campus and off-campus COA by contacting the college’s financial aid office, or Google the COA page for the college. So, for this example, any off-campus expenses that exceed $8,000 are not eligible for reimbursement. But it can set the off-campus COA at $8,000 to include rent, utilities, meals, and other reasonable living expenses. For example, a college might charge $10,000 for a meal plan and dorm room. Typically, the off-campus COA is smaller than the on-campus COA. However, the COA for off-campus room and board is different from the COA for living on campus. Generally, you cannot claim more than what a college allows for room and board expenses based on its stated COA for a particular academic period. How Do I Determine the Reimbursable Amount? Commuting students then cannot deduct mileage, gas, or any other transportation costs, but many students are not commuting to their new virtual classrooms. It doesn’t include non-academic fees such as student activity, parking, and transportation. The off-campus room and board reimbursement, which can include utilities and other reasonable living costs, are available to students enrolled on at least a half-time basis and on an 8-year graduation track. The reimbursable amount depends largely on the maximum amount the college permits for off-campus living costs based on its published cost of attendance (COA) used for financial aid purposes. The short answer is: Yes, room and board expenses for off-campus housing – including a parent’s home – may be reimbursed through a 529 plan, but not necessarily the full cost. Live in Maryland? See relevant article: Maryland 529 plan: Benefits of Contributing to an MD 529 Plan Can I Be Reimbursed By 529 For Off-Campus Living? For many parents, this new reality raises a few questions regarding the use of 529 plans for reimbursing the room and board expenses for housing a student at home. As a result, colleges and universities are refunding a portion of the students’ room and board costs. May Lose Value.With college campuses opting for online classes during the COVID-19 outbreak, many students have been taking classes from home, and all indications are this will continue at least through the fall of 2020. The Education Plan® and The Education Plan® Logo are registered trademarks of The Education Trust Board of New Mexico used under license.Īll other marks are the exclusive property of their respective owners. Ugift is a registered service mark of Ascensus Broker Dealer Services, LLC. Account owners assume all investment risks as well as responsibility for any federal and state tax consequences. You could lose all or a portion of your money by investing in The Education Plan depending on market conditions. Investment returns will vary depending upon the performance of the portfolios you choose. Units of the portfolios are municipal securities and the value of units will vary with market conditions. Investments in The Education Plan are not insured by the FDIC. The Education Plan’s portfolios invest in: (i) mutual funds (ii) exchange traded funds and/or (iii) a funding agreement issued by New York Life. Ascensus College Savings Recordkeeping Services, LLC, the Program Manager, and its affiliates, have overall responsibility for the day-today operations, including investment advisory, recordkeeping and administrative services. The Education Plan is administered by The Education Trust Board of New Mexico. Keep in mind that state-based benefits should be one of many appropriately weighted factors to be considered when making an investment decision. You also may wish to contact directly your home state’s 529 plan(s), or any other 529 plan, to learn more about those plan’s features, benefits and limitations. You also should consult a financial, tax, or other advisor to learn more about how state-based benefits (or any limitations) would apply to your specific circumstances. Please Note: Before you invest, consider whether your or the beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in that state’s qualified tuition program. For more information about The Education Plan, call 1.877.337.5268 or view the Plan Description and Participation Agreement, which includes investment objectives, risks, charges, expenses, and other important information read and consider it carefully before investing.
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