Warning about 529s distributions and scholarships

This is not accurate. Financial aid isn’t counted in the support calculation. You need to compare their actual earnings (eg summer job) with their support from you (health insurance, imputed rent for time spent at home, other incidentals including pocket money, phone etc). They are likely to need to earn several thousand dollars, and much more if they are at home in the summer, to provide >50% of their own support and avoid kiddie tax.