If you are claiming your daughter, and I assume you are, your daughter can't claim the baby, but you might be able to.
The main point is do they live with you and do you supply more than half of their support.
Even if you do claim your daughter and grandchild, your daughter can file if she worked and she could get a refund if she had tax withheld, but she would say "someone else is claiming me as a dependent"
Please click on the link below to determine if your daughter is your dependent.
CLICK
HERE for more information on claiming a dependent
