<p>From what I remember schools report only “qualified tuition and related expenses”. You save receipts for books, computers and any qualified expense that you pay for (see IRS lists) and tell you plan what it was for and they send you a check… Keep receipts for proof.</p>
<p>“Does that mean that 529 funds cannot include room and board”? - no you cant use 529 funds for living expenses, including room and board. Likewise if you receive a scholarship that covers room and board, you pay taxes on that portion of the scholarship. As I recall…</p>