Claiming our daughter as a dependent [which she qualifies for] how will this affect her Tax Return?

[velmlinger]

We get a tax break or deduction for claiming our daughter as a dependent but how does this compare to how it will affect her Tax Return?

[Texas Roger]

She loses her $4050 personal exemption. If her income is over $6300, she will have to pay tax on the amount over $6300. If she could claim herself and keep her personal exemption, she would pay tax on the amount over $10,350.

[RebeccaC · Accepted solution]

Your dependent's income will not affect your tax return. They need to indicate on their tax return that someone can claim them as a dependent. The personal exemption will then stay with you. Your dependent is still able to take the standard deduction amount.