Which is more beneficial: If I don't claim my college student on my taxes and she gets more financial aid OR I claim her and I get a tax break?

[Anonymous]

For an average middle-class family:
I'm trying to figure out if I don't claim my daughter (24, FT College Student) will she be able to receive more grants for college? But if I don't claim her, will I have to pay thousands of dollars in taxes? I'm trying to figure out the best option. If she gets more money and I don't have to pay extra in taxes, that's great. However, if I don't claim her, she doesn't get any more financial aid, and I have to pay more taxes, that's not okay.

[Mike9241]

talk to the financial aid department at school.  while you don't have to claim her even if she is your dependent if she's required to file a return she would have to indicate she could be claimed as a dependent.

[xmasbaby0]

@Anonymous 

" But if I don't claim her, will I have to pay thousands of dollars in taxes? "

Why do you think not claiming your daughter would cost you thousands of  dollars in taxes?  At your daughter's age all you "get" for claiming her as a dependent is the $500 credit for other dependents and maybe the $1400 3rd stimulus if you did not get it already for claiming her.   

CREDIT FOR OTHER DEPENDENTS

https://ttlc.intuit.com/questions/4499708-what-is-the-500-credit-for-other-dependents-family-tax-credit

The only other thing you might "lose" if you do not claim a student is possible education credit that could be entered on your tax return.

https://ttlc.intuit.com/questions/1901172-what-education-tax-credits-are-available  

[xmasbaby0]

@Anonymous Take the advice provided by Champ Mike 9241.   We cannot advise you as to what will get your daughter the most financial aid.  We only answer income tax questions here.   Talk to to the financial aid office at her school.   

As for your daughter:

https://ttlc.intuit.com/community/dependents/help/when-do-i-have-to-answer-yes-to-being-claimed-as-a-dependent/00/1994319