There's no question as clarified in other responses, the student is your dependent. But to clarify a few things.
1) The program will ask you about support. The program asks you if the ***STUDENT*** (not you) provided more than half of their own support. So make sure you answer that question *NO*.
2) There are only two possible ways the student can provide more than half of their own support.
A. The student is self-employed or has a W-2 job that pays them enough money throughout the entire tax year to justify and substantiate a claim that the student provided more than half of their own support. The money earned by the student has to be more than the total amount of grants, scholarships, 529 distributions and any other 3rd party income received by the student, or received by the school on behalf of the student. (Your gift could be considered 3rd party income, since anything you pay towards the student's education and support is considered 3rd party income to the student.)
B. The *student* (not you) is the *primary* borrower on a qualified student loan, and sufficient funds were distributed from that loan throughout the tax year to justify and substantiate a claim that the student provided more than half of their own support. The money distributed needs to be more than the total of all grans, scholarships, 529 distributions and any other 3rd party income received by the student, or received by the school on behalf of the student.
Nutshell: all moneies received by the student, or by the school on the student's behalf from 3rd parties *do* *not* count for the student providing their own support.
While definitely not unheard of, it's not common for an undergraduate student under the age of 24 on Dec 31 of the tax year, to not qualify as a dependent on someone else's tax return - usually the parent(s).
Scholarships - used for the qualified education expenses of tuition, books, and lab fees. That's it. No exceptions. (Though "lab fees" is a rather broad expense category.)
Grants - same as scholarships unless the grant letter specifies otherwise.
529 Funds - Same as scholarships, but can also be used tax free to pay for the "unqualified" but allowed expenses (emphasis mine) of room and board, provided that room and board is in direct support of the education. So if 529 funds are used to pay for room and board during the summer semester, yet the student is not enrolled for the summer semester, then the 529 funds used for that time frame are not tax free.
Room - In addition to rent, it also includes the cost of utilities (gas, water, electric, etc.) If living off campus, cost claimed can not exceed what it would cost to live on campus. If the student has a letter for each semester, indicating that on campus housing is not available then this restriction is lifted. But even with a letter, costs must be reasonable. (No $5K/mo penthouse suites)
Board - The cost of food. If the school offers a meal plan, then cost claimed for this can not exceed the cost of the meal plan per semester. If student lives off campus *and* has a letter for each semester that on campus housing is not available, then that restriction is lifted. However, costs must be reasonable. (No steak & lobster for lunch and dinner every day.)
