Do I need to file taxes or a return?

[aconfusedstudent]

Okay, so here's the deal. I'm trying to determine if I owe taxes on the money that's refunded to my bank account each semester.

For one, on my 1098-T (which I could only get in my school portal, not the particular website where you directly access it), box 5 EQUALS box 1. Now. I've seen people say in that case, that means none of my scholarship or grant money is taxable. But here's my question:

I receive a refund, each semester that I take classes (meaning, I've taken classes each semester, including Summer, but if I didn't take classes in the summer one year, I probably wouldn't get a refund). The scholarship I have pays tuition DIRECTLY (I'm almost certain, no excess money as far as I'm concerned, hence why box 1 and 5 are equal). But, I also get pell grants from FAFSA, so I'm almost certain that these refunds I get are due to me not fully using the pell grant. Also to note, I won a scholarship my first year (from the school) which gave me extra money for my first two semesters (wasn't applicable after).

Now, my mother/parents file me as their dependent and NONE of the refunds from school I've gotten have exceeded 12,400 a year (for any year).

As for the refunds deposited in my bank account, I've saved the vast majority of the funds. I'm not sure, but I don't know if I need to file for the refunded money I do spend. I have received HEERF grants, which have added up to be more than I've spent (and apparently these are not taxable), which should cover my spending.

So do I need to file my taxes/a return, or do I not meet the requirements and I have nothing to worry about?

[Hal_Al]

Q.  Do I need to file taxes or a return?

A.  No. As you surmised, since the amount, that is potentially taxable,  is less than the $12,550 (2021 threshold), you are not required to file a tax return*. That assumes you have no other income. 

HEERF grants are neither taxable or reportable. 

*A dependent  must file a tax return for 2021 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
2.          Unearned income (interest, dividends, capital gains, unemployment) of more than $1100.
3.          Unearned income over $350 and gross income of more than $1100
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,550 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

[aconfusedstudent]

Okay, so Scholarships are NOT unearned income? And, say, I got refunded nearly 4000 one semester to my bank account, as long as that number does not exceed that 12,400 (or 12,550?) and I'm a dependent, like you said, no return or filing necessary? Thank you.

Edit: I also do not earn any money from a job.

[Hal_Al]

Good question.  Scholarships are actually a hybrid type of income.  For most purposes taxable scholarship is unearned income. But, for the purpose of calculating a dependent's standard deduction, scholarship money is treated as earned income. A dependent's standard deduction is his earned income + $350  (minimum $1100, maximum $12,550).

In your case, no return or filing is  necessary.  

PS. The standard deduction is adjusted each year for inflation.  $12,400 was the 2020 max. 

[aconfusedstudent]

Thank you very much.

Also another thing, do I need to do anything with the funds I have saved? Does it matter if the amount I've saved goes beyond that 12,550 threshold? Meaning this only deals with yearly income? I make sure to report how much I've saved to FAFSA, is that all I need to do?

Sorry if this is redundant in any way. Again, thank you.

[Hal_Al]

Q. Meaning this only deals with yearly income? 

A Yes.

Q.  I make sure to report how much I've saved to FAFSA, is that all I need to do?

A.  I don't know. This forum is for questions on  income tax.