We lived in Indiana and moved to Texas. Our daughter still maintains residency in Indiana and attends college there as well. She filed her taxes as a single living in Indiana and did not declare she could be claimed as a dependent. I was working on my taxes and removed her on my taxes but then ran into questions about my 529 withdrawal to pay for her schooling. It appears I must declare her as a dependent. or order to not pay taxe on the withdrawal. We still support her but she lives in Indiana. I can answer questions about dependent status and get she is and she is not. Does she have to amend her return? Do I wait for her amended return to clear before I file electronically? How do I not have to pay taxes for my withdrawal if the money went to pay for her education.
