This has been a great discussion.
Dosmom1234: having him contribute the max to a Roth will shift more of the taxable scholarship UNDER the deduction/kiddie tax threshold amounts.
I’ll throw a wrench in here with: is a 529 distribution considered support provided by the student?
If a non-qualified distribution, the 529 withdrawals are taxable income to the student, it’s considered a completed gift of the parent for estate tax purposes. Yet no where is there a definitive answer for the support test.
I’m getting more than frustrated with tax policy contradicting itself or being vague!
