Q. Do the payments from my daughter's 529 plan count towards the parents' support or does it count towards my daughter's support?
A. Simple answer: That's parental support.
The treatment of expenses paid with distributions from Sec. 529 plans and Coverdell ESAs in the support test is uncertain because of the dual nature of these college savings vehicles and a lack of IRS guidance. The consensus among tax experts is that it is parental support, because the parent is the owner of the plan.
