If I'm not claiming my child this year, would I not include her in my dependents? Or can I still add her but not claim her?

[macuser_22]

Do both parents live with the child?

[DanielV01]

It depends.  If she is living with you, then you can list her as a member of your household but that you don't wish to claim her.  This way, if she would otherwise qualify to be your dependent, but either you are allowing your child's other parent to claim her for certain benefits by filing Form 8332, you may still claim the benefits that you are still entitled to (Head of Household, Earned Income Credit, and Child and Dependent Care Credit).  On the other hand, if she is a college student under 24 with significant income (she has provided more than half of income), you still may claim EIC, even though she is not a dependent.

However, if she's not living with you, there is no need to input her information into the system.