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Yes, it is still okay to claim her residency in her home state. Attending school is considered a temporary absence.
From the IRS Publication 501:
Temporary absences.
You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, military service, or detention in a juvenile facility. It must be reasonable to assume the absent person will return to the home after the temporary absence. You must continue to keep up the home during the absence.
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March 11, 2023
10:39 AM