College aged kids. what do you pay for, what does your kid pay for?

[Luv Bunnies]

DS22 is in his final semester of college. His major (Musical Theater) requires a lot of time. Between his classes, projects, rehearsals and performances, we knew going in that he wouldn't have time for a job. Because we live on the opposite coast, we also agreed that he would be in on-campus housing all four years. We didn't want to help him deal with a lease and furniture from so far away. He also has no desire to drive in his college town (actually a very large city), so being able to walk across campus to classes was a necessity.

He has scholarships from the school that pay for about a third of his tuition each semester. We cover the rest of his tuition, housing and meal plan. He actually dropped the meal plan this semester. He was wary about going to the dining hall last semester because of Covid. He said he only ended up going a few times. He was either getting take-out from campus restaurants or cooking meals in his apartment. Our deal is that after he buys groceries, he tells me how much he spent and I reimburse him. If he needs a household item, something for a class or a book, he texts me a link. I order it on Amazon and have it shipped directly to him. I don't give him a set amount for spending money. I randomly send him a little money here and there (usually $50 - $100), which he spends on Uber Eats, pizza delivery or meals out with his friends. My mom and my sister also send him random amounts of money (for which he is very grateful!). Sometimes I get a text or a call where he acts pathetic and says he's working hard on a project and he's starving and asks if he can order Uber Eats on my credit card (my card is on his Uber account for rides to and from the airport). Of course I always say yes, but keep it reasonable. He has the pathetic act down pretty well. His acting classes are paying off!

 

[LovesTimone]

DD lived at home, worked as a server, paid for her college classes, and books, gas for her car and fun money... We paid her car payment, car insurance, covered her health insurance, any medical bills and phone... I was really into couponing back then, she never had to spend for personal items, I would get everything almost for free .... She had the opportunity to go away to school, and we left it up to her, she said I'm not going into debt like that... She still has friends that are so so in debt with student loans...

Her Bio-Dad, would send her a visa card with around 1,000 dollars on it every quarter, and his dad sent her a check every month for whatever she wanted to use it for...

So no debt leaving college...

 

[kdonnel]

Didn't you just post that your college kids filed as non dependents? How is that possible if you are paying for everything?

I offered a scenario where people should look at their filing situation.

I claim my college age kid since she has no earned income and it is a grey area if 529 money in her name counts towards the 50% support.

I started putting money in a 529 plan when each was born. When they turned of age the money became theirs.

 

[AlohaNow]

Many of you are extremely generous to your kids during their college years! DS18 will be leaving in about a year to attend university outside of the US. There will be no tuition charge and we will pay his rent for all five years. Though I see him wanting to be completely independent of us and taking over all his expenses at some point during his education. He already knows that he can make big bucks tutoring English so he plans to start that as soon as he gets settled. He'll have to figure out leasing an apartment, etc., on his own as he is already familiar with the landscape of the country and we are not. We'll help him out here and there when we can, and certainly won't let him starve!

I started putting money in a 529 plan when each was born. When they turned of age the money became theirs.

That's how an UGMA/UTMA works, but not a 529 plan. The owner of a 529 always maintains the asset. But, you do you.

 

[kdonnel]

That's how an UGMA/UTMA works, but not a 529 plan. The owner of a 529 always maintains the asset. But, you do you.

Yet when withdrawing money to pay for college expenses the 1099-Q arrives in my daughters name and attached to her social security number. That is I believe where the murkiness comes with the IRS. Can that money count towards the 50% support limit? Some tax focused sites indicate it is ok while others say there has yet to be a ruling from the IRS.

To me it is strange to get an official IRS form that you are not required to report on your taxes in any way as long as the distribution was spent on qualified expenses.

In my daughter's case the 1099-Q distribution each year is well more than the money amount needed to apply the 50% support rule. But I am still hesitant to file that way with her having absolutely no earned income.

And then there is the 1099-T that also arrives in my daughters name and social security number. Does that count towards the 50% support?

 

[AlohaNow]

I don't know hon. What does your tax professional/software say about your tax situation?

 

[kdonnel]

I don't know hon. What does your tax professional/software say about your tax situation?

That's just it, they don't agree.

 

[Kittyblue]

My mom has college accounts for both kids, but only my oldest is in college age. Her grandmother's account pays for tuition and books. She lives at home and I cover everything else. Her dad gives her a monthly allowance as well. Before COVID she was geared up to get a job with a friend's party company, but that fell through as they aren't doing any business right now.

 

[Mrs. Ciz]

In our family education is a huge priority. Throughout college for our 2 kids, DH and I paid for:
Tuition & fees (prepaid 529 tuition plan - paid into in lump sums and monthly from the time they were 5 years old)
Room (dorm/sorority or fraternity house/off campus apartment & utilities)
Board (meal plan or monthly grocery money)
Books
Sorority/Fraternity dues
Phone, car, all insurance
Parking passes

The kids paid for:
Dining out with friends
Extra clothes
Fun experiences
Toiletries

Both worked summer jobs every summer to make their fun money and had paid internships between junior and senior year. DD has had an on campus job (15 hrs a week) all 4 years of college. DS was in a band and played paid gigs during his first 2 years in college to make extra money. His last 2 years he got substantial scholarships and had a very demanding course load, so he no longer worked during the school year. Both will graduate debt free.

After graduation, they are expected to take over their car, car insurance, and cell phone bills 6 months after graduation. We give them that 6 month grace period so they can use their salaries to get work wardrobes, pay all their apartment deposits, buy some furniture, put a little in savings, etc.

 

[lpandorf]

We have a junior daughter at in-state flagship university. Her scholarship and federal loan covers the tuition and fees. We pay 100% of her off campus apartment rent, food allowance of $100/week and her share of the utilities. The apartment rent and food allowance is cheaper than living in the dorms so happy she moved off campus this year. We also give her $100/month spending money and she has a part-time campus job giving tours for additional spending money. She is in a sorority and she has to pay all those expenses on her own. She's an engineering major with a heavy workload and doing well so as long as we are able we will continue paying her living expenses. We have a son in high school who so far has not been working hard in school. If this doesn't change we may have him live at home and commute and prove he can do well in college. We have a good university in our city so reasonable for him commute.

 

[bjscheel]

After graduation, they are expected to take over their car, car insurance, and cell phone bills 6 months after graduation. We give them that 6 month grace period so they can use their salaries to get work wardrobes, pay all their apartment deposits, buy some furniture, put a little in savings, etc.

We did this- it happens DD22's birthday was right around that mark so she likes to say her dad gave her a car insurance payment for her birthday!

 

[DisneyTeacher]

We have a senior in college and we are paying for everything. Tuition for his first two years was fully covered because his father teaches at the school. After that we have paid his tuition, off campus apartment, and everything else. My parents paid my tuition and I know what a gift that is and we’re fortunate to be able to do it.

 

[goofyernmost]

When my kids went to college. I paid for the following:

I paid for the remainder of tuition after scholarship's, grants and work study program.
Dining plan
Books and supplies
Dorm and/or apartment housing
Transportation home (One went to school in Colorado Springs and the other in New Orleans). They both had a checking account that we contributed to and watched carefully. They got their own credit cards within days of arriving on campus. Strictly theirs. I was concerned but they did OK with it. The one in New Orleans did manage to have her purse stolen on campus and her pockets picked during Mardi Gras and lost our credit card which had been maxed out within a half hour of it happening.

Of course if they had needed something medically or even regular expenses we would have helped out with the exception of partying that was their expense from savings they accumulated during school breaks.