Q. Do I need to file taxes. if I am a dependent on my parent taxes and have no income but scholarship aid and a savings account (HYSA) with only $5 in it?
A. Simple answer: No.
If the savings account paid more than $1300, in interest, you would need to file a tax return.
A student, who can be a dependent, must file a tax return for 2024 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $14,600 ($13,850 for2023).
- Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1300 ($1250 for 2023).
- Unearned income over $450 and gross income of more than $1300.
- Household employee income (e.g. baby sitting, lawn mowing) over $2600 ($4,600 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
Note that some of your scholarship (FAFSA) might be taxable. Scholarships that pay for qualified educational expenses (QEE) (tuition, fees, books and other course materials) is tax free. Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. Typically scholarships that pay for room and board are taxable income, to the student.
