Support Test & Taxable Scholarship

[hoga]

My daughter had scholarship funding which exceeded her qualified tuition/fee expenses in 2020.  The excess paid most of her apartment rent while at school.  

I'm working on the Qualifying Child "support test" to see if she has provided 50% of her support.  I understand that the scholarship funds are not counted as income for her in this analysis.  However, should the apartment rent paid by the excess scholarship funds be included when calculating total support provided for her? 

Also, should the qualified tuition costs paid with scholarship funds be included in the total support provided calculation? 

[AmyC]

No and no. Your daughter lived at your home and her apartment during the year. A student is considered to have lived at home during the school year and maintains that residence. The student just happens to have a place near school for academic purposes. You supplied all homes, utilities, vacation, clothing, etc.

Scholarship income does not count in the support test. Page 14 of pub 501. Do not use scholarship income.

Take the short IRS quiz at Whom May I Claim as a Dependent? | Internal Revenue Service and use 2020 Publication 501 - Internal Revenue Service for help.