You are partially correct. Since she is NOT REQUIRED to file, her MAGI does not count. If she WAS REQUIRED to file because her income is higher than the filing threshold, then you would need to count her income. So, you can file her return to claim the refund, marking her as someone else can claim her on her return and also not include her income as part of the household income.
"the modified AGI of each individual whom you claim as a dependent and who is required to file an income tax return because their income meets the income tax return filing threshold" Instructions form 8962
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