What doesn count as own support?
Support includes: Expenses on the house – mortgage payments, real estate taxes, or if you’re renting, the rent. Utilities, electric, gas, water… Insurance (either homeowners, or renters). Health insurance, if you cover her. Food. If she doesn’t have a car – then a portion of your car payment and insurance and gas – since without a car, she’d have to pay for bus or cab or her own car. Add it all up. If it’s just you and her living in the house – then HALF of everything (except maybe the car, if she doesn’t use it much) is her portion of “support” as far as housing. It’s not that what she pays for “doesn’t count” as support – it’s just that what you pay is A LOT MORE than what she’s paying, and therefore, you are providing over half her support. If she’s 18 or older – then there are additional rules. but if she’s a minor – no question she’s your dependent.
Anything that is spent by or for her is considered support. If she has a good income and spends it all on herself, she could very well be spending more on her support than you are. That is because support is defined as more than just a roof over her head, clothes, and groceries. Things she gets: -if she has a car and she insures and maintains and makes the payments -clothes she buys -personal care items she buys -ipods, video games, etc. that young people spend a ton on You get: -the groceries that you buy -the clothes you buy -something for the roof over her head based on the fair market value of the rental value of your residence (even if you own it) divided by the number of people under that roof.
I assume your daughter meets the age and residency requirements and that support is the only issue. The money your child pays for her own things, even frivolous things, are considered support she provides herself. Amounts your child borrowed are considered support she provides herself. Pell grants and other need-based grants, but not scholarships, are considered support provided by your child. If your child lives with you, your expenses of operating your home, and food eaten at home, are considered support. If you borrowed money and spent it for your child’s education, that is support provided by you. You would figure the value of lodging at the rental value. Divide the household expenses by the number of persons in the home. If your child provided over half of her own support, she is not your dependent. The worksheet for you to figure this is on page 35 of the following document http://www.irs.gov/pub/irs-pdf/p17.
