Dependent vs. Married Filing Jointly

My daughter lived with us up to July 22. On July 22, she got married and starting living with her husband.  Should she and us file her as a dependent or as married filing jointly?
    What rainydaze said is a nice summary of the rules.  Assuming she met the other conditions to be your dependent, and assuming you and your daughter get along well, then you need to look at how your taxes, her taxes, and his taxes work out if: a) you claim her, she files MFS "someone else is claiming me", her husband files MFS  compared to b) you don't claim her and she and her husband file MFJ and claim themselves.  Need to look at Federal and State taxes.

    Note that the "natural" way for her to file would be scenario b and that the total tax for her and her husband will be higher than scenario a.  But it's possible that your tax savings would exceed their cost in which case you might share the money with them.  But allowing scenario is entirely her option.
      As of Dec 31, your daughter was married, which means she must either file with her spouse as Married Filing Jointly or Married Filing Seperately if they meet the minimum income requirements to file a tax return (MFJ, both under age 65: $19,000; MFS, you must file a return regardless of income).

      I'm assuming that had she been single at the end of the year, your daughter would be either your qualifying child or  your qualifying relative for you to claim her as a dependent.  Since she is married, the only way that you would be entitled to her dependency exemption is if she filed MFS and was willing to give your and your wife her dependency expemption.  In this case, her husband would also file MFS.  If she and her spouse file jointly, it gets a little trickier.  You would only be able to claim her as your dependent if she and her spouse filed a joint return only to claim a refund and no tax liability would exist for either spouse if they had filed seperate returns.
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