Here's how this works. You don't have to claim her. But if you do not, then you also can't claim the education expenses or credits that you may otherwise qualify for.
Also, it changes nothing for your daughter. She still has to select the option for "I can be claimed on someone else's return". That's because you *qualify* to claim her. Doesn't matter if you claim her or not. On top of that, while she can report the education stuff on her return, she flat out will not qualify for anywhere near the credits and deductions that you would qualify for, if you claim her. So either way you go, it appears to me to be a lose-lose situation. What little education credits she may get, she loses in the fine she pays for no health insurance. Kinda like, "pick your poison", cyanide or Strychnine?
