Please find here rules to claim a dependent
If the child lives with you - you are eligible to claim as a dependent.
As your daughter has income below $3650 (for 2009) - she is your dependent and may not claim a child assuming she is not filing a joint tax return.
"The boyfriend is around" - is not clear if he lives with the child or not - that should be considered.
Also - your income and income of the boyfriend should be considered.
Let me know if you need any help.
Tax Preparer
Taxes, Immigration, Labor Relations
Boyfriend does not live with the child. He comes over to our house to watch baby when mom is at college classes.
His income is around $23,000
Our combined income (wife and I) $130,000
Our daughter has never filed a return before
Thank you
Jeff
Hi Jeff
If the child doesn't live with the boyfriend - he may not claim a child as his dependent.
As your daughter is a dependent herself - she may not claim the child.
In this case - seems as you are the only one who is eligible to claim the child as a dependent.
You may reference the IRS publication 501 - I posted above for rules to claim a dependent.