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a. The allowance for room and board, as determined by the school, that was included in the cost of at- tendance (for federal financial aid purposes) for a particular academic period and living arrangement of the student. b. The actual amount charged if the student is resid- ing in housing owned or operated by the school. You may need to contact the eligible educational institution for qualified room and board costs. 4. The purchase of computer or peripheral equipment, computer software, or Internet access and related services, if it's to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible postsecondary school. (This doesn't in- clude expenses for computer software for sports, games, or hobbies unless the software is predomi- nantly educational in nature.) 5. The expenses for fees, books, supplies, and equip- ment required for the designated beneficiary’s partici- pation in an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act. 6. No more than $10,000 paid as principal or interest on qualified student loans of the designated beneficiary or the designated beneficiary’s sibling. A sibling in- cludes a brother, sister, stepbrother, or stepsister. For purposes of the $10,000 limitation, amounts treated as a qualified higher education expense for the loans of a sibling are taken into account for the sibling and not for the designated beneficiary. You can’t deduct as interest on a student loan (see chapter 4) any amount paid from a distribution of earnings from a QTP after 2018 to the extent the earnings are treated as tax free because they were used to pay student loan interest. Half-time student. A student is enrolled “at least half-time” if the student is enrolled for at least half the full-time academic workload for the course of study the student is pursuing, as determined under the standards of the school where the student is enrolled. Qualified Elementary and Secondary Education Expenses These are expenses for no more than $10,000 of tuition, incurred by a designated beneficiary, in connection with enrollment or attendance at an eligible elementary or sec- ondary school. How Much Can You Contribute? Contributions to a QTP on behalf of any beneficiary can't be more than the amount necessary to provide for the qualified education expenses of the beneficiary. There are no income restrictions on the individual contributors. You can contribute to both a QTP and a Coverdell edu- cation savings account (ESA) in the same year for the same designated beneficiary. Recontribution of Refunded Amounts If a student receives a refund of qualified education ex- penses that were treated as paid by a QTP distribution, the student can recontribute these amounts into any QTP for which they are the beneficiary within 60 days after the date of the refund to avoid the need to figure the taxable part of the QTP distribution. Are Distributions Taxable? The part of a distribution representing the amount paid or contributed to a QTP doesn't have to be included in in- come. This is a return of the investment in the plan. The designated beneficiary generally doesn't have to include in income any earnings distributed from a QTP if the total distribution is less than or equal to AQEE (defined under Figuring the Taxable Portion of a Distribution, later). Earnings and return of investment. You will receive a Form 1099-Q from each of the programs from which you received a QTP distribution in 2022. The amount of your gross distribution (box 1) shown on each form will be divi- ded between your earnings (box 2) and your basis, or re- turn of investment (box 3). Form 1099-Q should be sent to you by January 31, 2023. Figuring the Taxable Portion of a Distribution To determine if total distributions for the year are more or less than the amount of qualified education expenses, you must compare the total of all QTP distributions for the tax year to the AQEE. Adjusted qualified education expenses (AQEE). This amount is the total qualified education expenses reduced by any tax-free educational assistance. Tax-free educa- tional assistance includes: • The tax-free part of scholarships and fellowship grants (see Tax-Free Scholarships and Fellowship Grants in chapter 1); • Veterans' educational assistance (see Veterans' Ben- efits in chapter 1); • The tax-free part of Pell grants (see Pell Grants and Other Title IV Need-Based Education Grants in chap- ter 1); • Employer-provided educational assistance (see chap- ter 10); and Chapter 7 Qualified Tuition Program (QTP) Page 51