My son has one class left to finish his major. He will take this class spring semester. We will be loaning him the money to pay his tuition. There are a number of scenarios to consider for the best tax benefit. I could use some help in sorting this out.
We still have an Iowa College Savings 529 plan open for him. We could make a deposit to that account before Dec. 31 and receive a tax benefit for us (the parents). If we do that, should we then make the withdrawal directly to the college or to our son?
The other option is to give the money to our son and let him pay the bill and get the tax benefit - if indeed he would qualify for one.
Where is the best tax benefit?
He will be in his 5th year of college spring semester. He will take just the one class and be working a job. He has been a dependent in 2012 but will not in 2013.