Oh, sorry. For me a full ride means tuition, room, and board.
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The 529 was in our name, not our son’s. The “income” accrued to us, not him. Our tax attorney was clear on this. But, as you say, this point is moot as the moment our son reported to USMA, he was no longer considered a dependent.
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Usually the distribution will be made to the kid, in the expectation that they have lower income (and therefore a lower marginal tax rate) than the parents. Kiddie tax is designed to limit that workaround while your kid is still in college. Hence the need to either have them earn enough money to pass the support test or wait until they are no longer in (at least half time) education.
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SO MUCH TO TAKE IN… in order to understand this. No wonder we were confused. Sounds like it’s CONFUSING. I’m still listening. Thanks for all the input so far. Head spinning!
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