Your granddaughter would not be REQUIRED to file a federal or state tax return for 2025 based on the amounts you mention. However, she MAY qualify for the refundable American Opportunity Tax Credit. See What Is the American Opportunity Tax Credit? - TurboTax - Intuit for the requirements.
The American Opportunity Tax Credit (AOTC) is partially refundable, allowing taxpayers to receive up to $1,000 (40% of the $2,500 maximum credit) as a refund even if they owe no taxes. It applies to the first four years of higher education for eligible students, with the remaining 60% ($1,500) acting as a nonrefundable credit to reduce tax liability.
What you need to know about education credits
Check if you need to file a tax return
Individual Income Tax FAQs
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