If your daughter was a full-time student for at least 5 months and lived with you for at least half the year, AND you provided at least 50% of her support, you may claim her as a dependent.
She should also file her own taxes. If you claim her as a dependent, you will take her exemption. When she files her own taxes, she will mark on her taxes that she was claimed as a dependent. You do not have the option to report her wages. She must report her own.
Please let me know if I can assist you further.