Summer Job and Filing Taxes?

[krslnguyen]

Hello there,

My daughter made $6500 last summer, paid around $700 in taxes.  For the 2021/2022 school year, she recieve $2000 for scholarships.

Does she need to files taxes if she make under the income threshold?  She's now a freshmen in college and is not working again til this summer?

We're claiming her as a dependent to recieve the American Tax Credit for Tuition!

Thank You, 

[DawnC · Accepted solution]

She does not have to file, but she should to get back her $700.   She should be able to use Free Edition, claim her W-2 and get a refund of everything in Box 2.    She doesn't owe any taxes (I am assuming the $6500 was income on a W-2 and she had no other income), so that $700 that was withheld is hers and the only way to get it is to file a 2021 tax return.   Just be sure she marks the boxes that say someone else can and will claim me for 2021.  

[Hal_Al]

She is not required to file (see rules below) but  is allowed to file if she needs to get back income tax withholding. She cannot get back social security or Medicare tax withholding (boxes 4 & 6 of the W-2)

Scholarships that pay  for qualified educational expenses (QEE) are tax free and do not need to be reported on her tax return. QEE is tuition, fees and course materials (books and required computer). Only if box 5 of the 1098-T exceeds box 1 is there a possibility that some of her scholarship is taxable. 

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she 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

[krslnguyen]

Thank you so much !