A shorter answer: FAFSA wants to be sure your parents' income is counted toward your financial ability to pay. For this purpose, establishing financial independence includes, but is not limited, to not being listed as a dependent on anyone else's return.
The IRS, on the other hand, is just advising you where the individual deduction should go. If you take it, no one else can, and if anyone else takes it, you can't. This is easy for them to check in their computers using your SS#.
Beyond that, the IRS is just saying the one who pays the biggest total share, who is in an interdependent relationship as specified, gets the deduction.
Hint: As long as anyone else in another state is taking a deduction for you, you will definitely not qualify as an in-state resident for tuition purposes. So this is where you need to start. But you also have to ask the question, "Are you really independent of your parents?" Your state probably has guidelines for this, and it might take some time to meet those guidelines, but you start by knowing exactly what they are so you know what you need to do. In order to be independent, you definitely will need to be paying your own expenses, which probably means having a job unless you're independently wealthy already, and you probably aren't, because then you wouldn't need in-state tuition ;-).
Have a good day and good success on becoming an independent adult!
