Unfortunately, you have to make a choice between getting in-state tuition rates and claiming your daughter as a dependent for tax purposes (this is not uncommon).
You can't claim the American Opportunity Credit or Lifetime Learning Credit for anyone that is not listed as a dependent on your return.
You can claim a deduction for student loan interest if:
- You paid interest on a qualified student loan in tax year 2020.
- You or your spouse, if filing jointly, can't be claimed as dependents on someone else's return. (You can take the deduction as a student. If you're a parent making payments on your dependent student’s loan, you can also take the deduction).
- You're legally obligated to pay interest on a qualified student loan.
- Your filing status isn't married filing separately.
- Your MAGI is less than a specified amount, which is set annually.
