@VolvoGirl wrote:
They don't have to file if they only have W2 income under 13,850 (2023) but can file to get back any withholding taken out in boxes 2 or 17. But you don't get boxes 4 or 6 back. If they got a 1099Misc or 1099NEC they have to file it no matter how small the amount.
The filing requirement for dependents is complicated, but due to certain rules, a dependent may be required to file a return if their unearned income (income not from working) is more than $1250, or their unearned income was more than $400 and their total income was more than $1250.
This scholarship is unearned income, so whether or not they need to file depends on if they have any other income. But the 1099 must be reported on their return, not the parents' return.
Even though it was issued on a 1099-NEC, it should be reported as "miscellaneous" or "other" taxable income, not as self-employment income.
