We are a divorced couple but have a daughter going to college in the fall of 2025. The colleges told us that the 2023 tax filings that we do in early 2024 will be what is used for the FAFSA determination. Her father is the one that will fill out the FAFSA so would he need to be the one to claim her as a dependent for that filing year? Also, if he provides the majority of financial support in the current living arrangement, but I have an older 529 plan in my name foe her, does he even add the 529 plan info if he’s the parent applying on the FAFSA? Thanks for your help.
Hello mhoffman44,
Welcome to our ask the expert event today. Glad you stopped by. In reading your questions, your ex-spouse will do the FAFSA for your daughter and you also have a 529 plan to be used for her college expenses. I have some good background on FAFSA. Since your ex-spouse is claiming your daughter, he would fill out the FAFSA. He would also include any 529 distribution from that account. Since your name is on the 529, you may receive a 1099-Q under your name and let him know about it. The information from the 1099-Q will show the amounts distributed and those should align with the payments that will be made towards her college expenses. I have a couple resources about 529 and 1099-Q. I have attached here for you. https://www.irs.gov/forms-pubs/about-form-1099-q. This second one is from our Turbo Tax website. https://turbotax.intuit.com/tax-tips/college-and-education/guide-to-irs-form-1099-q-payments-from-qualified-education-programs/L6yxSZA87. Hopefully the information links help you with your situation. Thank you for allowing me to assist you today. Have a great day.