ThomasM125
Expert Alumni

Education

I could not find a definitive article from the IRS or elsewhere supporting the claim that the parent who set up the 529 plan would by default be entitled to use it as support for the student. It would seem a logical conclusion that the student's control over disbursements from the fund would be an important factor. If the student had full control over disbursements from the account and the parent had little or no control, then the IRS may see contributions to the fund as a gift to the student, in which case disbursements would not be considered as coming from the student.

 

Here is an article that addresses the issue from The Tax Advisor. It does not draw firm conclusions, but it may help you in your deliberations:   Dependency exemption issues for College students

 

 

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