529 refund

After paying his college bill from his 529 account in December, my son became a resident advisor and they credited him $5,000.
He can get a refund for the asking, but I am concerned it will screw up the
529 account, so it seems prudent to hold onto the credit for the next bill in July.
Any advice here?
And a related issue... I have read on another college's website that compensation for being an RA is not taxable because it simply reduces the college tuition and living in the dormitory is a requirement. Do you agree with that?
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On the first question, it seems reasonable and is what I would do - but I am just an ordinary taxpayer, not a professional.
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The value of living in the dorm for free is not taxable income because living in the dorm is a condition of employment. If the RA also gets a zero cost meal plan, that is tax free as well because the meal plan is provided by the employer for the convenience of the employer.
If the college requires the student to actually pay for room and board, then reduces the student's tuition by the same amount then we have a potential problem.
If the college gives the student free room and board AND reduces tuition then the student may have taxable income equal to the tuition reduction unless some other employment related exception applies.
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wrote:

Thats pretty much it; they give him a free meal plan and a free room; he has to pay full tuition. Thanks
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