For a student, "support" is more than money.
Understand that scholarships, grants, 529 funds, money from mom and dad, gifts from Aunt Mary, etc. do not count for the student providing their own support. There are only two possible ways a student can provide more than 50% of their own support.
1) The student is self-employed or has a W-2 job and earned enough during the entire tax year for which they are claiming they supported themselves, to have actually paid more than half of their own support.
2) The student is the ***PRIMARY*** borrower on a *qualified* student loan, and sufficient funds were distributed during the tax year to justify the student providing more than half of their own support.
Now, on the other side of that, it is perfectly possible for the student to have earned a million dollars, yet still not be able to justify providing more than half of their own support. Here's an exaggerated scenario for that.
First, we need to define what the IRS considers support. Support includes:
- Housing/Utility costs
- Clothing
- Food
- Transportation
- Qualified Education Expenses
- Entertainment
Now lets say your qualified education expenses for 2018 (Tuition, Books, Lab fees) totals $20,000
Housing & Utilities say $1500/mo for 12 months comes to $18,000 for the year.
Transportation cost lets say are $400/mo for 12 months. So that's $4,800 for the year.
Food for a student is roughly $300 a month. So for 12 months that comes to $3,600 for the year.
Clothing, you might spend $1000 (if your lucky) the entire year for clothing.
Entertainment, you might spend say, $150/mo. That would come to $1,800 for the year.
So your support costs for the 2018 tax year roughly total $49,200. Lets round that up to $50,000
Income:
YOu had a job and earned $30,000. Yes, that's more than half your support expenses. But the IRS counts "your" income last.
First, the IRS looks at scholarships and grants (to include things like fellowships too). Lets say those total $20,000
Next, the IRS looks at 529 funds. Lets say you had a distribution in 2018 of $10,000 from a 529/Coverdell fund.
Now those two 3rd party sources total $30,000, and that's more than half of your support paid for by a 3rd party. So regardless of your earnings during the tax year, there's no way that "you" provided more than half your own support. Just not possible.
"I live with my parents during break? "
So the FMRV (Fair Market Rental Value) of the housing they provide you is "NOT" you providing your own support. That would include what your parents pay for the utilities that you use also.
Understand that it is rare for a full time college student to provide more than half their own support, because doing so generally requires they have a full time job for the entire year. While I'm sure there are exceptions, I don't know of any full time college students that can hold down a full time job at the same time, and actually pass their classes. Therefore, while not impossible, if you were a full time student in 2018 then I seriously doubt you provided more than half of your own support. I just can't see it, unless you have low or no scholarships, grants or 529 funding *and* you were the *primary* borrower on a qualified student loan where sufficient funds were distributed to you in 2018 to justify a claim of providing more than half of your own support.
