I have a follow up question on this.
We used 529 distributed to our child (who is a student beneficiary) to pay for one semester.
After payment, our child received some scholarship, which was refunded to him. This scholarship becomes our child's income, meaning it will be taxed at our child's tax bracket.
My question is if the scholarship amount is taxed as his income, can our child deposit this amount in his IRA? Note: he didn't have any job related income in tax year 2019.
