It says that in order to be a qualifying child, a student under 24 must also have lived with the person claiming him/her as a dependent for more than half the year (temporary absences such as for attending school count). So If she found a job and moved out by June 30, she would not be a qualifying child. She also would not be a qualifying relative if she earns more than $5050 in 2026. Support doesn't even come into the equation unless the residency test is met.
But if she is out on her own by the end of June 2026, she could file her own taxes claiming that someone else CANNOT claim her as a dependent, and she can file for the AOTC even if she claims the $4000 scholarship in the spring as income and counts that toward the AOTC expenses (tuition) it was applied to, and pays for rent and groceries out of the 529 fund. Then pays her own living expenses for the last 6 months of the year out of her earned income, which is the expectation for an adult working full time.
