@djarvis88 parent' support doesn't matter. There is no requirement for the parent to provide the student any support. Not one penny. The support requirement is on the student, and *only* the student.
"If the student did *not* provide more than 50% of the student's own support, then the parent's qualify to claim the student as a dependent on the parent's tax return".
There are only two possible ways the student can provide more than their own support, Yet it is still possible that even with both ways, the student can not possibly justify a claim to providing more than half of their own support. This is because of that little thing the IRS refers to as "reasonable" costs.
If the student:
- has a W-2 job or is self-employed and earned sufficient amount (in the same tax year) that is in excess of all third party support received, to justify a claim to providing more than half of their own support.
- The student is the *PRIMARY* borrower on a *qualified* student loan, and sufficient funds were distributed during the tax year that are in excess of all third party support, to justify the student's claim of providing more than half of their own support.
Even with both or either of the above, it's possible for the student to have earned a million dollars, yet still not be able to justify providing more than half of their own support. For example (this is an exagerated example) if the student has $80,000 in third party support (scholarships, grants, 529 distributions, money from Mom & Dad, Gift from Aunt Mary, etc.) that would mean the student would need to have earned at least $80,001 to justify a claim of providing more than half. However, if an undergraduate claims that it cost them more than $160,000 (including tuition) to support themselves for a year, be ready for an audit. The IRS is not going to go for that. Particularly for a single undergraduate under the age of 24.
In other words, renting a $5000/mo penthouse suite isn't going to fly, as the IRS will not in any way, see that as "reasonable" for an undergrad. Claiming $1000/mo for food won't fly either. So steak and lobster for lunch and dinner 7 days a week, with steak and eggs for breakfast isn't gonna cut it with the IRS. It's just not "reasonable". Likewise, that 7-day cruise they went on during spring break may be considered an unreasonable entertainment expense for an undergraduate too. But then, there've been some really good deals that time of year targeted specifically at college students too.
