Thank you for your detailed reply. I have the following questions regarding your reply:
"I suggest you first gain clarity as to if the student is your dependent. If they are, you can still "Not claim" them, however they still cannot claim themselves. They can file a tax return as a dependent whether they are claimed by someone or not."
Does this mean that even though the student qualifies for my dependent, I don't have to claim him (if I decide to do so)? The reason is that my son will have a full time job from June to December and will have an regular income. Hence, he will need to file a tax return. If I claim him as a dependent, then when he files his own tax return and indicates that "someone can claim him as a dependent", will he still be qualify for the standard deduction on his tax return?
In your reply:
"If the student is your dependent, but your income will not allow you an education credit, you do have the option of "not claiming" the student in which case the student can file (as a dependent) and be eligible for the "NON-REFUNDABLE" portion of an education credit."
What is the NON-REFUNDABLE portion of the education credit? Does it matter if the 529 fund is paid to my name and then I make the tuition payment from my account?
