AmyC
Expert Alumni

Investors & landlords

1. Your son opened the brokerage account and his name is listed first. He has some passive income and loss.

I assume you are claiming your son as a dependent so this gets a little trickier since the kiddie tax may come into play, which could put his income on your return. See What is the Kiddie Tax?

2. The 529 can be used for room and board in addition to tuition, books, etc. See if you can use up the 529 using 529 for Room and Board. Colleges have budgets for students living off campus. Qualified 529 expenses can include those expenses for a student living off-campus but may not exceed them. For $11,200 you should get most or all that used up -depending on the college figures.

 

Use any remaining funds against Qualified Education Expenses - Internal Revenue Service.

3. If the 529 is pretty well used up and combined with the passive income, he would be under the filing limit and not required to file a return so you are both off the hook. Double check with this quick quiz by the IRS, Filing requirement - Do I need to file a tax return?

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