There is a minimum income requirement for filing a tax return, which this interest does meet. I know years ago the minimum was about $9000/annual. However, NOT filing a return also would mean that the interest was not returned to her as a refund (since it was apparently sent as "taxes due" on an income-producing account*). Since you state that the situation is due to a bank error, perhaps you should speak with someone at the bank to see if they can handle the situation without your having to file a return. If they cannot do this, 1) the bank should reimburse you any costs for filing yourself - on behalf of your daughter, and 2) perhaps you should consider changing your bank. 🐵 (Our family has preferred using credit unions over banks for a number of years.) * This is doubly concerning since a bank or other financial institution generally does not withhold ANY taxes unless there is several hundred dollars in interest received on an account during a tax year.
