Because she was a student until May, and is younger than 24, you can still claim her as a qualifying child. You get the $500 credit for other dependents and you can claim education credit for 2024 on your return. A dependent cannot claim a dependent, which means since your grandchild is living with you, you can also claim your grandchild as a dependent for the child tax credit and perhaps earned income credit, depending on amount and sources of your income. By next year, if your daughter earns more, you will not be able to claim her as a dependent, nor will you be able to claim the grandchild, since your daughter will be able to claim her child as a dependent.
Your daughter can file her own 2024 tax return to seek a refund of tax withheld from her paychecks but must say on her own return that someone else can claim her as a dependent.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
