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. If you're trying to make the case that she supported herself, having the distribution go to her is helpful, but not the end-all.
Q. When I (parent) said that she paid for more than half of her support, it gave her EIC, and also AOC refundable credit, recovery rebate. Is this right?
A. Yes. That's how it works. The EIC and a recovery rebate are just for 2021 (Covid rules).
