one for our son who we allowed to claim himself as a dependent.
For starters, it does not matter if you actually claim your son as a dependent or not. The key word is *QUALIFY*. If you QUALIFY to claim your son as a dependent, then your son *MUST* select the option that he can be claimed on someone else's tax return. If just does not matter if you actually claim him or not.It is *not* common for an undergraduate to not qualify as a dependent on the parent's tax return.
Next, since you did not claim your son as a dependent, that means you can not claim *ANY* education expenses for him. That includes the 1099-Q. Not a single penny. Instead, your son will claim any and all education expenses on his own tax return, including the 1099-Q if he's required to report it.
If your son is the named beneficiary on the 1099-Q, then your son claims/reports the 1099-Q it on his own return if required to do so.
If you the parent are the named beneficiary on the 1099-Q, then you will report it on your return and if not used for qualified expenses (including room and board) for a qualify student that is listed on your tax return as either a tax filer or a dependent, then you will pay taxes on that distribution.
Remember, for the dependency status, the parents are not required to provide any support to the student. Not one penny. THe support requirement is on the student, and only the student. That requirement is:
If the student does not provide more than 50% of their own support, then the parents qualify to claim that student as a dependent on the parent's tax return. Scholarships, grants, 529 distributions, gifts from Aunt Mary, money from parents, and any other third party source of income *does* *not* *count* for the student providing their own support.
