What counts as a qualified room-and-board expense for a 529 if my student lives off campus?

Room and board is a qualified 529 expense as long as the student is enrolled at least half-time. For students living off campus or at home, the IRS caps the qualified amount at the college's official room-and-board allowance in its published cost of attendance, which the financial aid office can provide. So you can pay rent, utilities, and a reasonable food budget from the 529, but only up to that school-set figure, spending above it becomes a non-qualified withdrawal on the excess. Keep documentation of the school's allowance and your actual costs. Note that expenses like a security deposit, furniture, or transportation don't qualify. This is one of the most commonly overbilled 529 categories, so match your withdrawals to the published allowance carefully.