Sorry to jump in, but this is the closest to my case thread, with a slight modification and I am concerned about an alternative situation which I may not have considered, when filing my own taxes (parent having paid into the 529 program):
- my son finished school mid 2021 (June) and started his first job in Sept (! critical diff to the original case), thus got his W2 for the three months of 2021
- his SS is on the 1099-Q from the 529 program
- his SS is on the 1099-T from the school, for this last semester
- I initiated a tax return for 2021, and claimed his as dependent, assuming I could get some credit from the payments I made into the 529 program, from where the distribution came (unfortunately I did not get any credit, per TurboTax, I assume because my spouse and I, filing jointly, may have surpassed the threshold for such?!?)
Reading this entire thread it is now apparent to me that he will have to claim himself as dependent, and I will have to file an amendement for my filed taxes, and remove him. Questions:
1. Is the above assumption correct?
2. If the above is true, will he have to provide the 1099 info on his return, even though he had no participation in the sum being provided?
2. Is he expected to pay taxes on any of the amount provided into his school?!? This is actually the most critical part
