College deductions - Room & Board?

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The IRS site says room and board is not a not qualified education expense, yet Pro Series has a line for it and if I put a number in it, the refund changes. Why is this?

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IRonMaNAnswer

Level 15

Room and board doesn't qualify for the tuition credit but it can be used to offset 529 plan withdrawals.

Slava Ukraini!

IRonMaNAnswer

Level 15

Room and board doesn't qualify for the tuition credit but it can be used to offset 529 plan withdrawals.

Slava Ukraini!

G

gfpstaxesAuthor

Level 5

Thank you, I had just figured that out before I read your message. The client had 2 1099-Qs and one had $436 in box 2 (earnings) and it was being taxed until I put in the Room & Board expense.

The interesting thing is that the other 1099-Q had earnings on it also and it was never taxed. The difference between them is that the one that got taxed had the parent as the recipient and the other had the dependent (student) listed as the recipient. In both cases, the student was the beneficiary.