Appreciate your response. I wasn't clear...
1. This year, even though she can be claimed as a dependent, she is doing her own taxes (that's what we want). She will not be a dependent on our taxes. On her taxes, she did check that no one can claim her as a dependent. The 1099-Q was under her name and so was 1099-T so she reported the relevant information on her taxes. (Net) Tuition was larger than her 1099-Q so no issues there and no tax implications/broken regulations
2. I took the credit for the contributions I made last year on my returns (IL only). My understanding is that all I need is a proof of deposit into the Brightstart account (which was from my savings account). If you're telling me that is not kosher and you're sure about that, then oops and I will do an amended return.
Thanks
