post 9-11 MHA and dependent status

[RobC76]

Both of my kids live with me while attending school full time.  They both receive MHA which is going straight into savings for future college cost since they live in the home.  My question is can they be claimed as dependents for the dependent credit.  They aren't paying for anything while living in the house ( so that covers the 50% rule), however they do receive MHA which is given for housing expenses.  I just want to make sure I am doing the right thing since they do receive a housing allowance but are not currently using it. 

[MaryK4]

Yes, even if they receive income, if it is not actually being used for their own support, it does not count for qualifying as a dependent.