There are two types of dependents, "Qualifying Children"(QC) and standard ("Qualifying Relative" in IRS parlance even though they don't have to actually be related). There is no income limit for a QC but there is an age limit, student status, a relationship test and residence test.
A child of a taxpayer can still be a “Qualifying Child” (QC) dependent, regardless of his/her income, if:
- He is under age 19, or under 24 if a full time student for at least 5 months of the year, or is totally & permanently disabled
- He did not provide more than 1/2 his own support. Scholarships are excluded from the support calculation
- He lived with the parent (including temporary absences such as away at school) for more than half the year
If she does not qualify under the QC rules, she might still qualify under the Qualifying Relative (QR) rules. The most relevant QR rule is that her income must be less than a mere $4300 for the whole year. That is unlikely if she had 3 W-2s.
So, to be a QC dependent, she must be considered as living with you. That makes her a full year PA resident. She would file a resident PA return and a non-resident ID return.
How that might affect her claiming to be an ID resident for in-state tuition is not a tax question. So, beyond the scope of this forum.
