Yes, you can claim your daughter as a dependent if the Qualifying Child rules below are met. If she received a 1098-T (Tuition Statement) form it would be claimed on your return.
To be a Qualifying Child -
1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year, (b) under age 24 at the end of the year and a full-time student or (c) any age and permanently and totally disabled.
3. The child must have lived with you for more than half of the year. Temporary absences while away at college are considered living with you.
4. The child must not have provided more than half of his or her own support for the year.
5. If the child meets the rules to be a qualifying child of more than one person, you must be the person entitled to claim the child as a qualifying child.
6. The child must be a U.S. citizen or U.S., Canada or Mexico resident for some portion of the year.
7. The child must be younger than you unless disabled.
NOTE: If she worked, she can file a tax return, to receive a refund of the taxes withheld or balance owed. However, she must indicate on this tax return that she can be claimed as a dependent on someone else's return.
Here's a link to the IRS website for more information: https://www.irs.gov/newsroom/a-qualifying-child
Yes, a 20 year old full-time college student can still be claimed as a dependent--even if the child had over $4050 of income. Any education credits can be entered on your own tax return. If your dependent had her own income she can file a tax return but must say she is being claimed as a dependent on someone else's tax return.
I have a variant of this question: “Should” I claim my 20yo college student daughter as a dependent? I pay more than 50% of her living expenses, but gain no benefit by claiming her given my favorable financial situation. She has no aid, scholarships, etc. Would my not claiming her benefit or hurt her tax situation; she has a part time job on campus earning pocket change.
It is not a choice for your child. The rule is that if she CAN be claimed she must say she can be claimed as someone else's dependent on her own tax return. Even if you do not claim her.