ROTC Housing Choice

[kinnem]

"Expenses That Do Not Qualify. Qualified education expenses do not include amounts paid for:
Insurance,
Medical expenses (including student health fees),
Room and board,
Transportation, or
Similar personal, living, or family expenses.This is true even if the amount must be paid to the institution as a condition of enrollment or attendance."

Ok..... So those folks using 529 plan monies to pay the above are violating the law??? Oh boy....

The above statement was regarding scholarship monies. I wouldn't assume that the same restrictions apply to 529 plan dollars. It may but one would need to research it. eg re: 529 plans

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.

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.

The actual amount charged if the student is residing in housing owned or operated by the eligible educational institution.

 

[sheriff3]

Thanks Kinnem...
I read 100 page insurance contracts and policies for a living and this stuff makes my eyeballs bleed!!!

 

[Lynx]

"Expenses That Do Not Qualify. Qualified education expenses do not include amounts paid for:
Insurance,
Medical expenses (including student health fees),
Room and board,
Transportation, or
Similar personal, living, or family expenses.This is true even if the amount must be paid to the institution as a condition of enrollment or attendance."

Ok..... So those folks using 529 plan monies to pay the above are violating the law??? Oh boy....

The "Qualified Education Expense" rules relate to deducting certain expenses from taxable income, and in the application of tax-free scholarships. The rules for Qualified Education Plans (529 Plans) are different. The same IRS Publication 970 addresses these plans in Chapter 8. (Under these rules, we used 529 funds to pay Room & Board expenses directly to the University where our older son attended, when he was living in the on-campus dorms.)

 

[Future2LtMom]

The "Qualified Education Expense" rules relate to deducting certain expenses from taxable income, and in the application of tax-free scholarships. The rules for Qualified Education Plans (529 Plans) are different. The same IRS Publication 970 addresses these plans in Chapter 8. (Under these rules, we used 529 funds to pay Room & Board expenses directly to the University where our older son attended, when he was living in the on-campus dorms.)

This is just my personal opinion, but I think that's why there's so much conflicting information on the forum regarding the tax issues pertaining to educational expenses. The taxability depends on the source of the funds for the tuition, fees, R&B, etc. For instance, the rules for money coming out of an instrument such as a 529 plan are different for the rules for using scholarships to pay for educational expenses. So, going back to the rules for the scholarship, funds used for R&B ARE taxable.