The bottom line is if you claim your daughter then she can not claim a dependent on her own return. If she was under 19 on Dec 31 you can claim her no matter how much she makes. You claim your granddaughter on your return. Are you filing Single or Head of Household? She should qualify you for Head of Household.
Even if you completely delete her and don't claim her she still has to say on her return that she CAN be claimed on someone else's return.
