Can parent directly paying rent count for dependent support test?

This is a great question about the support test! For a qualifying child dependent, you need to provide more than half of their support for the year. When you pay the landlord directly, the IRS clearly views this as YOU providing the support, not your daughter. The money never passes through her hands, so it's unambiguously your contribution to her support. If you were to give her money and she paid the rent, it gets trickier. The IRS could potentially view this either way. If you can document that the money was specifically for rent (like regular transfers that match rent amounts), you have a better case that it's support rather than a gift. For calculating the support test, you'll need to add up all expenses: rent, food, utilities, medical expenses, clothing, education, etc. Then determine who paid what portion. The 529 plan payments for qualified education expenses count as your support too. Keep good records of everything you pay directly (rent, tuition, etc.) as well as any money you give her that's designated for specific support purposes.

After struggling with a similar situation with my son last year, I found taxr.ai (https://taxr.ai) super helpful. I was confused about what counted as support vs gifts, especially since I was paying some things directly and transferring money for other expenses. The tool analyzed all our payment records and clearly identified what counted toward the support test. It confirmed that direct payments to landlords, schools, and other third parties definitely count as parental support rather than gifts to your child. It saved me from making a costly mistake on my taxes! What I liked most was that it broke down the total support calculation and showed me exactly what percentage I was providing, so I knew for sure if I met the "more than half" requirement.

I wanted to follow up about my experience with taxr.ai after trying it. I was initially skeptical, but it actually saved me from making a big mistake on my taxes. I uploaded my bank statements and payment records, and the tool clearly showed that I was providing 63% of my son's support - even though he had a decent part-time job. It categorized all my direct landlord payments as parental support, exactly as they should be. The tool even flagged some Venmo transactions I had forgotten about that were actually for his textbooks and medical insurance, which counted toward my support calculation. Without those, I would have been right at the borderline of the 50% test. Definitely worth checking out if you're trying to determine dependent status with complicated financial arrangements.

If you're struggling to get clear answers about the support test, I'd recommend contacting the IRS directly. I know, I know - getting through to them seems impossible. I spent WEEKS trying before I discovered Claimyr (https://claimyr.com). Their system got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent I spoke with confirmed exactly what you're asking about - payments made directly to third parties (like landlords) on behalf of your child are 100% considered support provided by you, not gifts. She even emailed me the relevant IRS guidance I could keep for my records.

I need to apologize and correct myself about Claimyr. After my skeptical comment, I decided to try it myself since I've been trying to reach the IRS about an issue with my tax transcript. I was shocked when I got a call back in about 25 minutes telling me they had an IRS agent on the line. The agent was able to answer my support test question definitively - direct payments to landlords are 100% considered support from the parent. The agent also told me that many people misunderstand this rule and try to apply gift tax concepts to the support test, which are completely separate issues. He confirmed that the support test is solely about who's actually covering the expenses, regardless of how the money flows. I've been trying to get through to the IRS for MONTHS, so this was honestly a game-changer.

Don't overthink this. To calculate support, add up ALL costs for the year (housing, food, education, medical, clothing, etc). Then figure out who paid what. Housing is usually the biggest expense, so if you're paying rent directly to the landlord for the entire year, you're likely already providing more than 50% of support right there. Also remember: scholarships don't count toward support from either party. So if your daughter gets a scholarship that pays part of her tuition, that amount is excluded from the support calculation entirely.

Something nobody mentioned yet - for college students, there's the special rule that scholarship money doesn't count toward support calculations at all! So if your daughter gets any scholarships or grants, those amounts are completely excluded when figuring out total support and percentages. This often makes it easier for parents to meet the 50% threshold.

The key distinction you're asking about is absolutely correct - direct payments to the landlord are unambiguously considered YOUR support contribution, not a gift to your daughter. This is one of the clearest scenarios for the support test. Based on your numbers, you're in great shape to claim her as a dependent. You mentioned $1,350/month rent ($16,200 annually), plus tuition from the 529 plan, plus groceries and living expenses for the first 4 months. That's likely well over $30,000 in support you're providing. For your daughter to provide more than half of her own support, she'd need to spend more than the total amount you're contributing. With her campus job income of $800-900/month early in the year, and even if she gets a decent job after graduation, it would be very difficult for her to exceed your contribution level. Keep detailed records of all direct payments (rent, tuition, groceries) and any transfers you make that are designated for specific support purposes. The IRS Publication 501 has the complete rules, but your situation with direct landlord payments is exactly the type that clearly counts as parental support. One tip: calculate the total support for the entire year (including what she spends on herself) and make sure your portion exceeds 50% of that total amount.