My daughter is 19yoa and attends college full time. She also works and made about $6600 last year. Can I claim her as a dependent? If so, how do I deal with her income? Will I be able to deduct her tuition, $13000, that I paid?

#1;I guess yes aslongas you meet the requirements. As she is under age 24 and a full-time student for at least five months out of the year, and she did not provide more than half of her own support during the year then regardless of her gross income, youcan claim her as your dependent on your 2013 return.
Please visit the IRS website here; Who Can I Claim as a Dependent?


#2;aslongas she is your dependent, you can claim edu credit that yu paid for her; you can claim the American opportunity credit based on that dependent's expenses. She ,as your dependent, cannot claim the credit. ALSO,as you claim an exemption on your tax return for an eligible student who is your dependent, treat any expenses paid (or deemed paid) by your dependent as if you had paid them. Include these expenses when figuring the amount of your American opportunity creditor student loan interest deduction or etc. If you claim an exemption for a dependent who is an eligible student, only you can include any expenses you paid when figuring the amount of the American opportunity credit or etc.

Does she then file her own 1040 for her income and I also claim her as a dependent or do I include her income on my taxes?

Does she then file her own 1040 for her income and I also claim her as a dependent=========>>>>>>>>>it depends; The IRS has established specific filing requirements for dependent taxpayers.she as your dependenytalso needs to file her own return aslongas she as an n unmarried dependent taxpayer, has unearned income(i.e., interest/ div or capital gain or etc) of $950 or An unmarried dependent taxpayer must have earned income of $6100 or more.
The amount of herr earned income (salaries, wages, and other money you receive for work performed) is more than $6,100.
•Unearned income (income such as interest, dividends, capital gains, unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust) is more than $950.
•And/or gross income is more than the larger of $950 or earned income plus $300(>$6100 for 2013).

or do I include her income on my taxes?========>>>>>>>>> not in your case.Your child files her own return. You NEVER report your child's earned income on your return.In certain situations, it may be easier and less expensive to include dependents' income on your tax return rather than have them file her own return. IRS rules are based on both the amount and type of the dependent's income. The general rule is that you can claim a dependent child's investment income on your own return up to a certain amount -- above that, she has to file herself.

My federal/State return was rejected because I claimed my daughter as a dependent and my daughter's return was already submitted. So I cannot claim her as a dependent now and get the EIC? I lose out on $3000 for her $300? Is there anyway around that? She is in college and worked for 5 weeks this past summer and I have just gone back to work. I didn't know that filing taxes for her would effect my taxes in that way.