exemptions and credits for student

IVe
Sat, 16 Apr 2011 21:38:23 +0000

My DD has to file taxes in resident state of NY and college state of MA. I keep reading that the student can not claim an exemption in federal return if parent can claim them, but how about state returns? I read in the NY form about the student claiming the exemption for college credit purpose and I am confused why the form and instructions would mention that? Parents don’t have to claim same dependent in federal and state? Can I claim her in the federal return for AO credit and let her claim the exemption in her NY return? I only will get 1000 exemption money anyway. It seems that the only credit she can get is the standard deduction and maybe the resident tax credit. The tax she has to pay seems so high! If they get college based grant and a federal grant can the latter be excluded from income in the college state since it was not awarded by the institution? I feel so bad that her taxes are so high in NY!