My son is turning 18 years next month and makes $11000 a year and pays for more than half his expenses.
He has been accepted to college and we have a 529 plan for him. Considering our income (mine + my wife) is around $200000.
Should I claim him dependent or independent?
The fact that he pays for more than 1/2 of his living expenses would disqualify him from being your dependent. But, does he really pay for more than half his support on $11,000.
The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.
Distributions from a 529 plan are considered parental support, since the parent is (usually) the owner of the plan.*
Money he puts into savings is not considered support.
The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf
* The treatment of expenses paid with distributions from Sec. 529 plans and Coverdell ESAs in the support test is uncertain because of the dual nature of these college savings vehicles and a lack of IRS guidance. The consensus among tax experts is that it is parental support, because the parent is the owner of the plan. If you are trying to make a case that it's his money, it would be helpful (but not a guarantee) to your case, to make distributions to the beneficiary or school, not the owner.
Enter your E-mail address. We'll send you an e-mail with instructions to reset your password.
©1997-2022 Intuit, Inc. All rights reserved.
Intuit,
QuickBooks, QB, TurboTax, ProConnect, and Mint are registered
trademarks
of Intuit Inc. Terms and conditions, features, support, pricing,
and service options
subject to change without notice.
Security
Certification of the TurboTax Online application has been
performed by
C-Level Security.
By accessing and using this page you
agree to the
Terms of Use.
Accessibility
