Clarifying first tax year to report for FAFSA and if student needs to appear as dependent on taxes

It does not matter for FAFSA purposes if she is a dependent for tax purposes.

It DOES matter for taking the tax credits (AOTC or LLC). You won’t take those until you actually pay tuition, so you can make that decision later. Once she’s over 17, it is a $500 credit and not the more generous Child credit. You might want to warn ex that this is his last year to get her as a dependent.