If she is you dependent (Qualifying Child or Qualifying Relative) she is your dependent. She may file, but she cannot claim herself, she cannot claim her exemption. She would need to choose "Someone else can claim me". The IRS does not allow a dependent to claim their exemption, even if no one else does.
You can file and claim her, but if she claimed her exemption, the return will be rejected and you will not be able to e-file.
Your daughter will need to amend her tax return and not claim her exemption. This may result in a tax liability for her, or she may need to return part of her refund. This all needs to be done before taxes are due this year, April 17th.
You may "paper file" your return and mail it. It would be smoother if you have your daughter mail in her Amended return 1040X before you mail your return in. A 1040X can be done with Turbotax, but all 1040X need to be "paper filed" and mailed.
Qualifying
Child
1. The child must be your son, daughter,
stepchild, foster child, brother, sister, half-brother, half-sister,
stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at
the end of the year and younger than you (or your spouse if filing jointly),
(b) under age 24 at the end of the year, a student, and younger than you (or
your spouse if filing jointly), or (c) any age if permanently and totally
disabled.
3. The
child must have lived with you for more than half of the year.
4. The child must not have provided more than
half of his or her own support for the year.
5. The child must not be filing a joint
return for the year (unless that joint return is filed only to claim a refund
of withheld income tax or estimated tax paid).
Qualifying
Relative
A
person is your qualifying relative if you can answer “Yes” to the following
questions:
-
Do
they live with you? Your relative must live at your residence all year
or be on the list of “relatives who do not live with you” in Publication
501. About 30 types of relatives are on this list.
-
Do
they make less than $4,050 in 2017? Your relative cannot
have a gross income of more than $4,050 in 2017 and be claimed by you as a
dependent.
-
Do
you financially support them? You must provide more than half of
your relative’s total support each year.
-
Are
you the only person claiming them? This means you can’t claim the
same person twice, once as a qualifying relative and again as a qualifying
child. It also means you can’t claim a relative—say a cousin—if someone
else, such as his parents, also claim him.
