Coverdell Question

[Edsel]

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.

 

[Gail in Virginia]

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. 

[Edsel]

Thank you Gail.  I admire your intelligence and willingness to help.