Non custodial parent and 529

[cshell2]

So, she needs 5K in 2020 (for just Fall semester) and

@mommdc

Isn’t money the non-custodial parent gives to D for education untaxed income to her in the year received?

So if she receives this $10k in 2020, assuming $5k in August and $5k in December, then that would be untaxed income for the 2022/23 FAFSA, right?

I think this is what he’s trying to avoid by changing the 529 ownership to his daughter. In that situation it’s not counted as income, but the daughter would have to count the 529 as her asset.