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May 16, 2021
Question

I the savings that I spent from my UTMA account was more than half of my support does that count for paying for more than 1/2 of my support in college?

  • May 16, 2021
  • 2 replies
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2 replies

AmyC
Employee
May 16, 2021

Here is the IRS Worksheet for Determining Support. College expenses are part of the worksheet. The worksheet will tell you if you are a dependent or paid over half of your expenses.

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Hal_Al
Employee
May 16, 2021

Q.   The savings that I spent from my UTMA account was more than half of my support does that count for paying for more than 1/2 of my support for the year.

A. Yes.

 

But, as AmyC suggested you should run the calculations on the work sheet. UTMA money is considered your own funds, not your parents.  If you provide more than half your own support, your parents cannot claim you as  a dependent. 

But support from a UTMA is not support from earned income. 

 

There's a new urban myth among college students that says they can get a $1000 from the government just for filing a tax form. For most of them, they simply aren't eligible. A full time unmarried student, under age 24, even if you don't qualify as a dependent, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working (more than half his support from earned income). You cannot be supporting yourself on parental support, UTMA, 529 plans or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.  It is usually best if the parent claims that credit.