I am the non-custodial parent and live in New York.
My son who lives in Connecticut, who turns 18 in January, will be attending college in fall if 2017.
Any tuition payments that I make for the 2017-2018 year would be reported on the following years FASFA form, line 45j, as untaxed income since I am not the custodial parent, resulting in lower financial aid.
Can my son open his own 529, when he turns 18, where I can make a contribution so that it does not count as untaxed income?
I don't expect to get any tax break but I figure not having the untaxed income will be better.
I am aware that a student 529 is considered an parent asset on the FSAFA, so its treatment would be more favorable than untaxed income.