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specifically as “tuition, fees, books, supplies, and equipment
required for the enrollment or attendance” of the taxpayer or the
taxpayer’s spouse or child, among others, at an eligible
educational institution. In addition, an eligible student
attending school at least half-time shall also include reasonable
costs for an academic period (as determined under the qualified
State tuition program) incurred by such student for room and
board while attending such institution. Sec. 529(e)(3)(B)(i).
Section 529(e)(3)(B)(ii), however, limits the amount of room and
board expenses that may be treated as qualified higher education
expenses as follows:9
The amount treated as qualified higher education
expenses by reason of the preceding sentence [sec.
529(e)(3)(B)(i)] shall not exceed the minimum amount
(applicable to the student) included for room and board
for such period in the cost of attendance (as defined
in section 472 of the Higher Education Act of 1965, 20
U.S.C. 1087ll, as in effect on the date of the
enactment of this paragraph) for the eligible
educational institution for such period.
9 As described in the conference report, the Taxpayer
Relief Act of 1997, Pub. L. 105-34, sec. 211(a), 111 Stat. 810,
expands the definition of “qualified higher education
expenses” under section 529(e)(3) to include room and
board expenses (meaning the minimum room and board
allowance applicable to the student as determined by
the institution in calculating costs of attendance for
Federal financial aid programs under sec. 472 of the
Higher Education Act of 1965) for any period during
which the student is at least a half-time student.
H. Conf. Rept. 105-220, at 361 (1997), 1997-4 C.B. (Vol. 2) 1457,
1831.
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