If your daughter qualifies as your dependent (see Rules for Claiming a Dependent on Your Tax Return), you can claim her. Even if she has income, if she does not provide more than half of her own support you can claim her. She will have to file her own tax return if required.
An unmarried dependent student must file a tax return if her earned or unearned income exceeds certain limits. To find these limits, refer to "Dependents" under "Who Must File" in Publication 501, Dependents, Standard Deduction and Filing Information.
Even if she does not have to file a federal income tax return, she should file so she can get money back (for example, federal income tax withheld from pay or qualify for a refundable tax credit)
Understand the answer but have a follow-up
Does she now file her taxes with ZERO dependents - she cannot even claim herself - correct?
Q. Does she now file her taxes with ZERO dependents - she cannot even claim herself - correct?
A. It is correct that she cannot claim herself. Starting in 2018 there no longer any "exemptions". So there is no where on the form to put 0 exemptions (dependents). Instead, she checks the box on form 1040 that says somebody can claim her as a dependent.
In TurboTax (TT), she indicates that somebody else can claim her as a dependent, at the personal information section. TT will check that box on form 1040.
With the tax law change, effective 2018, most students will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased.