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Deductions & credits
Just to be clear, it would be the children that are contributing the 529 plan because it is their money. It would need to be clear that the child is requesting that their pay is to be deposited into whatever account they choose.
Ideally, you should pay the child directly. Then the child can transfer money into a 529 plan if they choose to do that. In most cases, a child would want to keep some of their pay for other purposes.
The child's entire pay going into a 529 plan can easily be construed as a scam to get a business deduction and the real intent is that the parent is contributing to the 529 plan. So be sure to clearly document everything and let the child decide what they want to do with their pay.
‎January 24, 2025
10:51 AM