Q. R&B does count as a qualified expense and enables one to pay for the majority of that with 529 funds and still get an AOC if they use $4000 or more of their own non-529 money? Correct??
A. Yes.
Q. I did not directly pay the school from the 529 but send the 529 $ to my daughter's checking account, and then she immediately transfers it to the school in the exact same amount(s) so we have a nice paper trail. IS THIS OKAY?
A. Yes. Whether the money goes to her or the school, she is considered the "recipient".
Q. With that 20K scholarship would the student have to pay taxes if they made $5K over the summer?
A. The filing threshold for a student-dependent, with earned income, is $12,950 (2022). None of the scholarship is taxable (" that 20K was used for the qualified tuition expense" ).
