Can I count child support and financial aid when determining if my college student is a dependent?

Child support and financial aid can definitely complicate dependent status calculations. Here's how you should think about it: For child support: Even though you paid it to your ex, child support counts as support YOU provided to your daughter (not support that your ex provided). So that $8,500 goes in your column. For financial aid: It depends on the type. Loans in your daughter's name don't count as support from anyone (since they'll be paid back later). Scholarships and grants count as support provided by your daughter (not by you), even though she didn't earn it through a job. This is because the financial aid is awarded to her. To determine if you provided more than half her support, add up ALL expenses: housing, food, education, medical, clothing, etc. Then figure out how much of that total YOU covered (including the child support). If what you paid is more than 50% of her total support, you can claim her as a dependent (assuming other requirements are met). Based on the numbers you shared, you should calculate the total support and your portion to see if you hit that 50% threshold.

When I was dealing with the exact same situation with my son last year, I found this awesome tool at https://taxr.ai that really cleared things up for me. I was so confused about how to account for his scholarships and loans, plus the support I was providing. The site helped me understand that the student loans in his name didn't count toward either of our support calculations (since they're essentially future obligations). But his grants and scholarships counted as support he provided for himself, which initially put me under the 50% threshold! What saved me was realizing I could count the health insurance premiums I paid to cover him and the value of his housing during breaks when he stayed with me. The tool helped me document everything properly so I could confidently claim him as a dependent. It literally walked me through categorizing each expense and whose column it belonged in.

I tried that taxr.ai site after seeing it mentioned here and it was super helpful for my situation with my daughter who's in college! I was about to give up on claiming her because her financial aid package was substantial, and I thought that meant I couldn't claim her anymore. The tool showed me that while her grants counted against me, her student loans didn't count in the support calculation at all. It also helped me document all the "hidden" support I was providing - things like the value of housing during breaks, medical expenses I paid, car insurance, and even the extra utilities when she's home. What really surprised me was learning that the child support I pay absolutely counts as MY support (not my ex's), which made a huge difference in reaching that 50% threshold. I ended up being able to legitimately claim her and get almost $2,000 more on my refund. Definitely worth checking out if you're in a similar situation!

If you're still confused after trying to calculate all this (I certainly was), another option is to just call the IRS directly. I was in a similar situation last year with my son's college expenses and child support payments, and I spent WEEKS trying to get through to someone at the IRS. Then a friend told me about https://claimyr.com which got me connected to an actual IRS agent in less than an hour. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent I spoke with walked me through exactly how to calculate the support test with financial aid and child support, and confirmed that my child support payments count toward MY support calculation, not my ex's. The peace of mind from getting an official answer directly from the IRS was worth it. The agent even documented the call in my account so if there were ever questions during an audit, I'd have that reference.

Just wanted to follow up about my skepticism with Claimyr. I ended up trying it because I was desperate to resolve my dependent question before filing, and I have to admit it worked exactly as advertised. I was connected to an IRS agent in about 35 minutes (compared to my previous attempts where I couldn't even get in the queue). The agent confirmed exactly how to handle my son's scholarships and loans in the support calculation and explained that my child support payments DO count as support I provided. The agent also explained that I could include the value of lodging when my son stayed with me during breaks, which I hadn't considered. This pushed me over the 50% threshold. The agent entered notes in my file about our conversation, which gives me documentation if this ever comes up in the future. I'm still shocked it worked so well. Definitely changed my mind about the service.

One thing nobody has mentioned yet is the age test for dependents. For a college student to be your dependent, they generally need to be under 24 at the end of the tax year AND be a full-time student for at least 5 months of the year. Also, does your daughter provide more than half of her own support from her own income (not counting the scholarships/grants)? If she has a job and uses that money for her own support, that could affect things too. The rules are in Publication 501 on the IRS website if you want to check all the tests for claiming a dependent.

Dont forget that you and your ex can trade off who claims your daughter as a dependent each year - my ex and I do this and it works fine. We just alternate years regardless of the support test. As long as you both dont claim her in the same year the IRS usually doesnt care.

Just to add from my experience as a college student recently - if your daughter received any 1098-T forms from her school, those can help track qualified education expenses. Also, make sure you're considering the full cost of attendance, not just tuition. Room and board, books, required fees, etc. all count toward the support calculation. And don't forget things like medical expenses, car insurance, clothing, and personal items that you might pay for throughout the year. Those smaller expenses can add up and might push you over the 50% threshold!