<p>Pink Cadillac, hopefully Kelsmom will weigh in on this since she’s the expert, but what I was referring to was only concerning 529s where the owner is not the student or the parent – as in cases where a grandparent, aunt or uncle might be the owner and the student is the beneficiary.</p>
<p>This is a link to a thread from last year:
<a href=“http://talk.collegeconfidential.com/financial-aid-scholarships/853123-fafsa-529-plan-account-owner.html?highlight=fafsa+529+plan+account+owner[/url]”>http://talk.collegeconfidential.com/financial-aid-scholarships/853123-fafsa-529-plan-account-owner.html?highlight=fafsa+529+plan+account+owner</a></p>
<p>In any case, it doesn’t relate to your question since you are talking about a parent-owned 529. It is just reported as a parent asset. You do not also report distributions used to pay your daughter’s college expenses. You are right, that would be like counting it twice. If the 529 is not owned by the student or that parent though, then my understanding from that thread from last year is that it does have to be reported as a gift – untaxed income – to the student.</p>