I have a 26 year old daughter going to med. school. I am supporting her 100% including tuition, apartment rent and living expenses. She has nominal income from interest and capital gains (less than $2000). We are in Texas (no state tax). I am filing married jointly.
Last year, I tried putting her on my tax return as dependent and my tax liability did not change so i did not claim her as dependent (hoping that her filing with very small income, she may be eligible for scholarships) and she filed on her own. This year, I am finding some material on LLC (life long learning credit). My income does not allow me to get child credit at all. My question is whether i should claim her as dependent? Any way, I can use tuition paid for any tax credit or even deduction for income? If there is no change in my tax liability, should i just let her file on her own? Where do i even use the tax form she receives from school for tuition paid?
