adwagner[at]hotmail.com wrote:
- quote -

funds on his own support.

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- quote -

Thanks Alan. You hit the nail on the head. I will request the funds
to be distributed from the 529 account in my son's name. I assume you
also agree that any funds gifted to him directly (such as appreciated
stock) would count toward's his support, as long as he actually spent
the money. Right?

Thanks.

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removeps-groups[at]yahoo.com wrote:
- quote -

There is a small piece of Code that allows the taxpayer who is
entitled to the dependency exemption to forgo the exemption
allowing the dependent to claim the Hope Credit. The student can
not claim a personal exemption as the student is still a
dependent, albeit an unclaimed dependent. I've seen this happen
often to parents whose income causes the personal exemption to
phase-out. The child can include the expenses paid by the child
as well as the expenses paid the taxpayer who could have claimed
the child.. typically the parent(s).

The same rule holds for the Lifetime Learning Credit.

- quote -

funds yet the contributions count to the annual gift tax
exclusion. If the owner directs the distribution go to the
beneficiary or the school, the 1099-Q is issued to the
beneficiary. If the distribution goes to the owner, the owner
gets the 1099-Q. It seems to me, that this would be the
determining factor as to who provided the support for education.
So if you want to show that the designated beneficiary is
self-supporting, I believe you should direct the distribution go
to the beneficiary or directly to the school.

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In article <ae6071a5-428f-4059-91d9-1df5cb9fb586[at]a12g2000pro.googlegroups.com> ,
removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:
- quote -


It seems like OP knows if parent does not claim exemption, that
dependent child can claim the Hope, and is debating who should
claim the Hope.


If parent has very high income, Hope could be phased out. At higher
levels, the deduction is phased out.

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ArtKamlet at a o l dot c o m Columbus OH K2PZH

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On Feb 18, 7:44 pm, adwag...[at]hotmail.com wrote:

- quote -

Where did you get that from?

http://www.irs.gov/publications/p970...blink100020766

"The eligible student is either yourself, your spouse, or a dependent
for whom you claim an exemption on your tax return."

Furthermore, even if he paid for the education out of his own funds,
you still get the credit.

If you didn't claim him on your return and if he claimed himself as an
exemption on his return, then only he could take the Hope credit.
This might be a good thing to try to do if your income is so high that
you can't even take the Hope credit or Tuition and Fees deduction.
..

- quote -

Not sure if this is possible.


- quote -

No idea about withdrawals from the 529 -- whether they count as
support paid by the parent or the child. I imagine it counts as
support paid by either, so if the child would like to claim himself as
an exemption, then the withdrawal from the 529 should be considered as
paid by him. But I'm just guessing here, and could be wrong.

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My wife and I have a son who is entering college in fall 2009, and I
am considering the pro's and con's of having him take the Hope Credit
in 2010. This would require that we not take him as a dependent on
our tax return. I understand that I can freely do so, but if I want
him to benefit from his personal exemption he must provide at least
half of his own support. I expect he will have a summer job in 2010,
but he will otherwise not have any substantial amount of earned income
or passive income.

I have a 529 account with my son as the beneficiary (it is not a UTMA
529) and I am the owner. Since the deposits into the 529 account are
considered gifts, are the withdrawals considered his funds for
purposes of this support requirement?

How about any other assets that we gift to him? I can gift him
appreciated securities, which will not only help him provide over half
of his own support (giving him the exemption), but the capital gain on
the securities will also provide him income against which to apply the
exemption and the Hope Credit. Does it matter if I gift him the
assets in 2010 and he uses them in the same year? Are they any
presumptions on how he uses his assets? For example, if I gift him
the assets in 2009 - but he doesn't spend them in 2009 - is there a
presumption of any kind around who spent whose funds for particular
uses (college costs, support, etc.)?

Thanks.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >