First, understand that the parent is not required to provide the student any support. Not one single penny. The support requirement is on the student, and only the student. For that specific requirement, it's like this:
If the student did not provide "MORE THAN" 50% of the student's "OWN SUPPORT" then the parents' qualify to claim the student as a dependent on the parents' tax return. Scholarships, grants, 529 distributions, Gifts from Aunt Mary, money from mom & dad and any other 3rd party source *do not count* for the student providing their own support.
There are only two possible ways the student can provide more than 50% of their own support.
1) The student is self employed or has a W-2 job and earns enough money during the tax year to justify a claim of providing more than half of their own support. Additionally, the money earned has to be more than the total of all 3rd party support received during the tax year.
2) the student (not the parent) is the *PRIMARY* borrower on a qualified student loan, and sufficient funds were distributed to the student during the tax year you justify a claim to providing more than 50% of their own support. Additionaly the money distributed has to be more than the total of all 3rd party support received during the tax year.
Finally, take note here the key word is *QUALIFY*. If the parent's "qualify" to claim the student, it does not matter if the parents actually claim the student or not. The student must select the option for "I can be claimed on someone else's tax return" if the student is required to file a tax return.
The parents' have a choice. The student does not.
