Daughter attending school in a different state, but doesn't live on-campus. What is her dependency status?

[JK84]

Two years ago, my family relocated to another state. My daughter was already a full-time student at a local college and decided to stay behind to complete her degree. She moved into a small off-campus apartment and her boyfriend covers her living expenses (rent, utilities, etc.).  I cover her tuition through 529 withdrawals or direct-payments. The question:

What is her dependency status? She would be living here if it wasn't for school -- and I don't think the school offers on-campus housing anyway. I'm hoping she is still deemed a dependent so the 529 disbursements are not taxable.

[PattiF]

You can claim your daughter as a dependent based on where she is living for school.

From the IRS Publication 501:

Temporary absences.

You and your qualifying person are considered to live together even if one or both of you are temporarily absent from your home due to special circumstances such as illness, education, business, vacation, military service, or detention in a juvenile facility. It must be reasonable to assume the absent person will return to the home after the temporary absence. You must continue to keep up the home during the absence.

Please see this TurboTax Help article for other qualifications to claim a student dependent.