I have a daughter who is qualified as a dependent for my federal tax return. But I decide not to include her so that she can claim the education credit in her independent tax filing. That is for the Federal return. Now, I am a bit puzzled in the state (California) return in this case. During the federal return QA in TurboTax, she answered No to the question if someone else (in this case "me") will claim her as a dependent. So, it is aligned. However, differently from the federal, state return QA doesn't ask the same question. We assumed California may not need that information or TurboTax simply carries over federal answer to state. We don't know what is going on in the Turbotax background logic. Without knowing the logic, I followed my CA QA guideline in my return to include her as a dependent for California return even if I didn't include her for my federal dependent. Is this an error or allowed even if my daughter claimed no one will claim her as a dependent in her federal return?
