It won't allow a YES answer there. Your options are NO (keep your dependent listed on your return) or remove the dependent. See the worksheet posted above and here. There are a lot of costs that make up support. If you don't qualify to claim him, remove him and he will answer NO to the 'can someone claim me' question. You don't have to pay half in order to claim him, but he can't have provided more than half from his own funds.
If you can claim him but choose not to, he still has to answer yes to the 'can someone claim else me' question. The next question (will someone claim me?), he can say NO to. But he is not going to qualify for an education tax credit if he only has $7700 of earned income as he will have no tax due. If his income was higher or he also has scholarship income, he could possibly qualify for a credit. A full-time unmarried student, under age 24, whether a dependent or not, is only eligible for the refundable portion of the American Opportunity Credit if he supports himself by working. You cannot be supporting yourself on parental support, 529 plans, or student loans & grants. You usually must have actually paid tuition, not had it paid by scholarships & grants.
The question that you are asked during the dependent interview is not the same question that he gets asked after saying that he is a dependent. Please See Opus' explanation about the AOTC credit and support and the post right under that one.
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