2025: Son turned 24 in August. Graduated May 2025. Used 529 for his tuition He was under our ACA medical. Now TurboTax says not dependent.

[dreon1994]

Son turned 24 in August 2025. Graduated May 2025. We used 529 for his Tuition/Room/Board. He was also on our ACA Medical. Now Turbo Tax says he is not a dependent. What do I do?

[KrisD15]

Please clarify. What is it that you are asking about, that fact that your son is not a dependent, how to report a 529 distribution or something else? 

If he was not under 24 at the end of 2025, he would not be your Qualifying Child Dependent. 

If he did not live in your home after he graduated or if he earned more than 5,200 he would not be your Qualifying Relative Dependent. 

Because of this, are you faced with another issue and if so, what is that issue? 

[Hal_Al]

There are two types of dependents, "Qualifying Children"(QC) and Other ("Qualifying Relative" (QR) in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test. Only a QC qualifies a taxpayer for the Earned Income Credit and the Child Tax Credit. They are interrelated but the rules are different for each.

The support test is different for each type. The support test, for a QC, is only that the child didn't provide more than half his own support. The support test for a Qualifying Relative is that the taxpayer provided more than half the relative's support.

Since your son turned 24, in 2025, he can no longer be you QC dependent, even though he was a full time student for 5 months.   So, we next look at the QR rules.  He must have had less than $5200  of income and you must have provided more than half his support for the whole year.

[dreon1994]

First I was not aware that my son turning 24 makes him not a dependent on my taxes.  So for 2025, we used the 529 to pay for his last semester of college, had it deposited into my bank account, and paid the college bills.  I guess that 529 withdrawl and the corresponding college expenses will have to go on his taxes  However, he was on our ACA medical.  I paid his medical on our ACA bill.  I am hoping I can put his "portion" of the medical paid on his taxes.  The bill breaks out the cost for each person.  He makes good money, so he is above the poverty line.  (FYI Healthcare.gov  let me put him on my medical plan - I assumed he had to be a dependent.  So that is why I am annoyed.  I am stressing about how to enter all of this into TurboTax. ) ALSO I paid additional estimated 2025 taxes bc of my son's income.  If he was a dependent, his income is added to my income for the Premium Tax Credit - and I wanted to avoid a tax penalty.  Oh he still lives with us.)  So I just want to know how 529 withdrawls and the ACA medical are handled when I thought they were going to be on my taxes but now may have to be on my son's.  (Also when we added him to our medical Fall 2024 - he had no job offers and thought about doing a gap year.  Then gets a job and now I have a tax dilemma!)

[JamesG1 · Accepted solution]

If the IRS form 1099-Q was issued in your name, in TurboTax Online, follow these steps.

In the Search magnifying glass in the upper right hand corner of the screen, enter '1099-q'.  Click Enter.  Click 'Jump to 1099-q' and follow the screens.

You should reach Great news!  You don't need to report this form.  See also this TurboTax Help.

Is there one IRS form 1095-A which covers you and your son, both tax returns need to report the IRS form 1095-A information.

Follow these steps:

• Down the left side of the screen, click Federal.
• Down the left side of the screen, click Deductions & Credits.
• Scroll down to Medical.  Click the down arrow to the right.
• Click Start / Revisit to the right of Health Insurance Marketplace (Form 1095-A).
• At the screen Policy shared with another taxpayer, click Yes to the question Did you share this policy with another taxpayer who is not included in this tax return.
• At the screen Tell us more about your shared policy, include the taxpayer information.

 The IRS requires that your percentages are agreed upon by all and that the percentages add up to 100%.

• Your Premium Percentage
• Your SLCSP Percentage, and
• Your Advanced Payment of PTC Percentage.

Taxpayer 1's tax return should reference taxpayer 2.  Taxpayer 2's tax return should reference taxpayer 1.

See this TurboTax Help and this TurboTax Help.

NOTE:  Been advised that an update to the IRS form 1099Q entry will take place by Friday, February 27.

[Edited 02/18/2026 | 2:39 PM PST]

@dreon1994

[dreon1994]

Thank you!  I did find the healthcare information you just provided.  So glad that I am entering the information correctly.  I plan to enter the 1099Q and 1098T on my son's taxes.  We'll see how that goes.  

[KrisD15]

If the distribution reported on the 1099-Q was used completely for Room and Board, please do not enter that Form 1099-Q on anyone's tax return. 

Using a 529 distribution to pay room and board is a non-taxable event. 

Room and Board cannot be used towards an education credit, so that expense is not reported. 

The Education section has been redesigned and offsetting a 529 distribution with Room and Board expenses seems to no longer be an option unless there is a software update in the near future.

Keep a copy of the 1099-Q and receipt for room and board with your tax file. 

According to the IRS:

"Generally, distributions are tax free if they aren’t more than the beneficiary’s AQEE for the year. Don’t report tax-free distributions (including qualifying rollovers) on your tax return."
 

@dreon1994 

[dreon1994]

The 1099Q was used for tuition and room and board.  They are all qualified withdrawals for a 529.  I know the room and board cannot be used to towards the education credit.  I don't believe he will have an opportunity to claim an education credit since he also received an unexpected scholarship that would have covered some of his tuition.  I just saw a message saying that TurboTax will have an update for the room and board by February 28th.  Note I have been withdrawing from 529s since 2018.  I have documentation in place for each of my kids in separate binders with all expenses and corresponding receipts for these withdrawals.  This year has been the most difficult for entering the 529 data. I don't understand why this part of Turbo Tax had to be modified.  Should be the same data entry year to year - tuition, books, room and board, and supplies (ie computer, tools, etc) - all qualified withdrawals for a 529.  All data that I have entered in previous years.  Just frustrating. Not every one qualifies for credits.  It is just a bonus if Turbo Tax suggests it.  

[KrisD15]

Yes, you seem to understand the idea behind the 529 Distributions and Education Credits. 

Since your 1099-Q was used for both Room and Board as well as tuition and fees, you may want to wait for the update.