The rule is if she CAN be claimed as someone else's dependent then she must say on her own return that someone else can claim her. Even if you do not end up claiming her--she is required to say she CAN be claimed as a dependent. If she is filing her own tax return to seek a refund of tax withheld from her own paychecks, she must say in MY INFO that she can be claimed. As for her address, she should use the address where she wants the IRS and CA to mail her a letter or a check. If you do claim her, you can say she still lives at home since living on campus is considered to be a "temporary absence". Whether or not you qualify for education credits or not, you can get the $500 credit for other dependents for claiming her. If you are a single parent you can also get Head of Household filing status if you claim a qualified dependent.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
