Hi taxissues2021, thank you for the event questions
Please refer to IRS Pub 501, page 4, Table 2. 2021 Filing Requirements for Dependents.
https://www.irs.gov/pub/irs-pdf/p501.pdf
It defines "unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income."
For Single dependents, the three conditions:
1. Her unearned income interest income $135 is no more than $1,100.
2. Her earned income is no more than $12,550 (W-2 $4,188 + taxable scholarship $5,145).
3. Her gross income is no more than $12,550.
Based on the above, your dependent does not have a filing requirement.
IRS Topic No. 421 Scholarships, Fellowship Grants, and Other Grants classifies scholarship as "Tax-Free" or "Taxable" rather than "unearned" or "earned" income.
https://www.irs.gov/taxtopics/tc421
Lastly, the Form 8962 instructions clearly states "Who Must File" "TIP" - If you are claimed as a dependent on another person's tax return, the person who claims you will file Form 8962 to take the PTC and, if necessary, repay excess APTC for your coverage. You do not need to file Form 8962.
https://www.irs.gov/instructions/i8962
Hope the above helps.
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