If my daughter was living on campus in 2024, and most of her living expenses were covered by loans, do I need to fill out form 2120?

No.  This is a multi support form for when multiple people are providing support for a person who is not providing over half of their own support.

If your daughter is providing over half of her own support, then you would not be able to claim her as a dependent.  You can use this worksheet to determine if she is providing over half of her own support. 

To claim your daughter as a qualifying child based on her being a student, she cannot provide over half of her own support. If she does, you cannot claim her as a dependent. 

Are the loans in her name or your name?  If you some of the loans being used are parent plus  loans, then you would count these as your support not her supporting herself.  

The following criteria must be met to claim someone as a qualifying child:

• Your child (including adopted and foster children), your sibling, or a descendent of any of them.
• Age 18 or younger at the end of the tax year OR under 24 (and younger than you and your spouse) if they are a full-time student
• Lived with you for more than 6 months during the tax year
• They did not provide more than half of their own support (social security does not count)
• They did not file a joint return, unless it was to claim a refund
  
   

Q. Do I need to fill out form 2120?

A. No. Form 2120, Multiple support declaration, is not applicable when it is the student-dependent who is providing some of her own support. 

If the loans are in your name, or you cosigned, then that support is considered as coming from you.

A student away at school, is considered to only be temporarily away, and is still living with you for the dependent residence and support rules. 

The support value of the home, provided by the parent, is the fair market rental value of the home plus utilities & other expenses divided by the number of occupants.

The IRS has a worksheet that can be used to help with the support calculation. See: http://apps.irs.gov/app/vita/content/globalmedia/teacher/worksheet_for_determining_support_4012.pdf

Most people still claim their child, as a dependent, in your situation.

Be advised, you daughter will not be eligible for the refundable portion of the American Opportunity Credit if she claims herself (this assumes she is unmarried, under 24 and a fulltime student).