Q. My daughter W2 income is $7175, there are both federal and state withheld. We claimed her as dependent.
Does she have to file a tax return, even she chooses to give up getting back withholding?
A. No. Since her only income is wages of less than $12,550, she is not required to file.
But, you complicate the issue by asking "Does she have to file her tax separately?" Filing her income on your return is NOT an option. She either files her own return or no return.
Note that "Your gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,200) plus $350" is just a more complicated way of saying you must file if " You have unearned income over $350 and gross income of more than $1100".
