Edsel Posted March 11, 2020 Report Share Posted March 11, 2020 Long ago, parents set up a Coverdell for their daughter. In 2019, withdrawals from the Coverdell totalled $9000. The funds were issued in the name of the daughter and were used exclusively for tuition. Daughter also worked part-time as a sound engineer in a Nashville recording studio, and made $6000. Question: Can the $9000 be considered as "support" for the daughter when considering whether the daughter can claim herself as a dependent? If so, her "support" would be $15,000 for this purpose, even though only $6000 is taxable. There are other factors which affect whether the daughter can claim herself, but I believe the question above can have a "yes" or "no" answer. Appreciate responses. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 11, 2020 Report Share Posted March 11, 2020 IMO, yes. If the account was titled in the daughter's name, then the parents contributed to it when they set it up but the account and any earnings thereon had become the daughters and would be funds considered she provided for her own support. If the account was titled in the parents' name as guardians for the daughter, you might be able to argue that either way. This is not a researched and verified opinion, just a gut reaction. Quote Link to comment Share on other sites More sharing options...
Edsel Posted March 11, 2020 Author Report Share Posted March 11, 2020 Thank you Gail. I admire your intelligence and willingness to help. Quote Link to comment Share on other sites More sharing options...
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