What is tax return and how it works?

My daughter works but lives with her mom and I, and does not pay rent nor for food. If we claim her on our tax return, can she claim her child on her own tax return?

• Answer:

  If she is under 18 and makes less than $3,800 a year, you can claim her on your tax return. If she is over 18 you cannot, unless she turned 18 this year.(doesn't matter if she is a student or not.) She can claim the child on her own tax return and claim "head of household" even though she does not pay rent.