Hi,
My daughter received a 1098T. We paid for her semester using a 529 account and a UGMA. The UGMA produced a significant capital gain of $5K which we will (presumably) need to take on my daughter's return. We will use the 1098T (as required) on our return and claim her as a dependent. My question is: is there any way to show that the UGMA money was used for educational expenses and therefore reduce the tax on the gains on the UGMA shown on my daughter's return?
Thanks in advance!