Short answer: no. The fellowship is third party support and not support provided by her. But "living away from home" needs to be explored.
There are two types of dependents, "Qualifying Children"(QC) and other ("Qualifying Relative" [QR] in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit. Only a QC qualifies you for the Earned Income Credit. They are interrelated but the rules are different for each. The support rule is different. For a QC, the rule is that the child must not have paid for more than half her own support. But for QR, the rule is that you (the taxpayer wanting to claim her) must have provided more than half her support. So fellowship support doesn't hurt you if she is a QC; but does if you are trying to claim her as a QR.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
1. He is under age 19, or under 24
if a full time student for at least 5 months of the year, or is totally &
permanently disabled
2. He did not provide more than 1/2 his own support
3. He lived with the parent
(including temporary absences such as away at school) for more than half
the year
So, if she is away from home primarily for school and still considers your home hers, she may still be a QC. But if, she has moved out; then she cannot be your dependent. Not only is the support rule different, by fellowship that pays for living expenses is considered taxable income and she does not meet the income test.
A person can still be an
other dependent, if not a Qualifying Child, if he meets the 6
tests for claiming a dependent:
1. Closely Related OR live
with you ALL year
2. His/her gross taxable income for the year must be less than $4,000 (2015)
3. You must have provided
more than 1/2 his support
In either case:
4. He must be a US citizen or resident of the US, Canada
or Mexico
5. He must not file a joint
return with his spouse or be claiming a dependent of his own
6. He must not be the
qualifying child of another taxpayer
