What if parent transfers the ownership of the 529 account to a student/child? In this case student would provide more than half of his support, file as independent, get full standard deduction and AOTC? There is no credits at all on parents return because income is above $500,000. Student’s w-2 income $5000-6000 a year. If total educational expenses are 20,000, but 529 plan distribution $16,000, can a student use $4000 for refundable part of AOTC???
