Dear mustachians, hopefully this is a simple question.
My daughter graduated from college in 2017 and started full time work. She was dependent on us for ~6 months while she was working odd jobs. Since July, she has been employed full time and is not dependent on us. I estimate her total income this year to be around $40k. She is over 21.
In the past years, I filed taxes and claimed her as my dependent. She also filed separately based on her W2 income. But noted that she is a dependent.
I want to understand what is the correct way to file the taxes for both of us in February 2018.
1. I file my taxes. But, do not include her in any way?
2. She files taxes as a single filer? like 1040EZ may be?
Or is there a different way of filing taxes since she was part year dependent on me?
thank you.