Yes,you
probably want to claim her, if she is still your
qualifying child. (See FAQ below), because it is likely that you will benefit more on your tax return than you are losing on your higher health insurance premiums. You do need to include her income to determine the amount of Premium Tax Credit you are allowed to receive. You could have to pay some of this credit back as extra tax. However, this almost
certainly be made up for by other credits on the return, particularly the American Opportunity Credit (if your
daughter qualifies). If you qualify for
the full credit, it is worth up to $2500, $1500 of which can only be used on
taxes you might otherwise be liable for, and $1000 which you can get back even
though your tax liability is $0. On top
of that, you may be entitled to Head of
Household filing status, her exemption,
and the Earned Income Tax Credit,
all of which significantly increase your refund. See below to ensure she qualifies as your
qualifying child for Earned Income Credit: https://ttlc.intuit.com/replies/4835245 And this helps to determine if she qualifies for the American Opportunity Credit:
https://ttlc.intuit.com/replies/3301513
If you claim your daughter, she is required to file a return if she earned wages (reported on Form W-2) of more than $6300. If her income was another nature (such as a self-employed), she also needs to file. It is advantageous for her to file if she had taxes withheld (taken out of her paycheck). Doing so is the only way she can get a refund for the amount of tax she paid.
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