Is it better for a major child to file her own tax return?

[Sam-Vishwas]

Turbo Tax says my child (21+ years old) doesn't count as my dependent, as she has made more than $4,050 in 2016 on a W2 from her employer. She is not a full time student, but lived with me for entire 2016.  Is it better to file her return separately?

[MinhT · Accepted solution]

You cannot claim her as a dependent if she is 21, not a full-time student and earns more than $4,050 in 2016.

If she has income over income over $10350 (from form W-2) or of any amount from form 1099-MISC, she is required to file her own tax return. Even with W-2 income of less than $10,350, she may wish to file a tax return to receive a refund of part of her federal tax withheld.

[Sam-Vishwas]

Thank you. I will have her file her own tax return. Should I remove her from my tax return?

[MinhT]

Yes.