Very helpful. Thank you! Just to be sure I understand the proper way to review support testing for different situations: (Please correct anything that is in error)
- Dependent vs. non-dependent determination is completed each tax year and can vary year-to-year for an individual student?
- 529 distributions direct to school are considered self-support provided by the beneficiary student?
- 529 distributions (taxable) to the student are undefined by IRS, but generally considered parent support (529 account owner) if funds are used for student support vs saved. This is confusing as some CPA's present QTP taxable distributions to student as self-support. Another example.
- Scholarships to student are excluded from support tests? So it comes down if the student provided >50% of support for costs outside of those covered by scholarships.
- Sources of student funds that can be used for self-support. W2 wages are clear, how about student's savings? How are gifts handled? For example, money from relatives or parents to student that student then uses for their support?
Thank you!
