Q. Does this prevent him from filing independently?
A. Simple answer yes. Or more accurately, in my opinion, he must state he can be claimed as a dependent. He does not provide more than half his own support, he lives at home, and he was a full time student under 24.
But, as previously indicated, the IRS has not provided guidance on how 529 plan distributions are considered for the support test. The consensus is that it is parental support since the parent is the owner of the plan. You COULD take the opposite position, since he was the "recipient" of the 1099-Q (the distribution went directly to the school.
If he does claim himself, be aware of the support question in the personal info interview. It asks if he supported himself in 2019. But the fine print asks if he provided more than half his own support with EARNED INCOME. Answer no. Even though he is claiming he provided more than half his own support, it was not with earned income. This question determines whether he gets the refundable portion ($1000) of the AOTC.
