It's complicated. You can actually let the father claim her and still get the same money that you would by claiming her. There is a special rule in the case of divorced & separated (including
never married) parents. When the non-custodial parent is claiming the child as
a dependent/exemption/child tax credit; the custodial parent is still allowed
to claim the same child for Earned Income Credit (EIC). The EIC is the main source of IRS money for claiming kids. With $1500 income and 1 kid, that will be about $500 for you. You cannot get any Child Tax Credit with only $1500 income.
But the bigger question is who do you live with? For tax purposes, a child is the
"Qualifying Child" of any close relative he lives with. not just his
parent. For example, if you and your child live with your parents, you can
allow them to claim your child, instead of you. That may be better than you claiming her or splitting her with the father.
