@dyons - in your assumptions and worksheet, and I don't know how the worksheet if completed, if your daughter is reporting the $4,000, why aren't you just reporting $22,000 on your worksheet?
<<Line 22 (NY additions): 26,000 (did you want to see the worksheet data for this?)>>
it is possible that there is no income tax for your daughter, if her taxable income is low enough.
Also, will your daughter have other taxable income? One thing to consider is the "kiddie tax". If her TOTAL income exceeds $15,050 in 2024 and her unearned income exceeds $2600 (which it would due to the $4,000), her tax rate is subject to your tax rate under kiddie tax rules. This is FEDERAL
let's not worry about whether you can technically move the income to your daughter. I have looked at the IRS website and can't find a reference to whether it is permitted or not permitted. I know the 529 plan say you can have the distribution sent to the child, but it doesn't state whose SSN they will use if it is a non-qualified distribution.
