Intuit support board is awesome! I have a follow-up question related to the support test. My confusion relates to how to handle third party support vs. support from student and parent.
- Student receives scholarships that pay for the majority of tuition, fees, board. These appear on 1098T. This is third-party support as I understand it.
- Parents paid for some qualified expenses and were reimbursed via 529. These are on the parent's 1099Q. This is parent support.
- The student had a summer job and received 1099Q 529 distributions in their name and SS# due to scholarship (withdrawing funds without 10% penalty and being distributed directly to the student). Total of these proceeds from W2 and 529 is ~$30K and taxable income portion is ~$18K. Student is paying taxes on the 529 distributions. The student used these funds (W2 and some of 529 distribution) to pay for their support not covered by #1. This is student support.
My question: considering out of pocket expenses for student support (i.e. all expenses for student not covered by #1), the student paid more than 50% of their support, using their W2 and taxable 529 distribution. Does student meet the criteria for self-support?
