We distributed 529 in the name of our child (who is the student beneficiary) to pay for one semester.
After payment, our child received scholarship, which was refunded to him. This scholarship becomes our child's income, meaning it will be taxed at our child's tax bracket when the return is filed.
My question is if the scholarship amount is taxed as our child's income, can our child deposit this amount in IRA? Note: There were no job related income in tax year 2019.
