Your info on qualifying as a dependent were quite clear. I have one clarifying question on a scenario:
1) The student had significant unearned income
2) The parents had AGI high enough to disqualify from education credits
3) The student was beneficiary of a parent's 529 with funds sent directly to the student which were then to pay for qualifying college expenses
I have seen that it might be beneficial to have the not be claimed as a dependent in a scenario with 1 and 2. But do the 529 funds mean the player must respond that they could be claimed as a dependent on the parent's return? And would this result in having to pay taxes on the unearned income at the parent's rate?
