Another way of looking at it: since her unearned income (interest of $26.64) is less than $350; she doesn't need to file.
If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2019 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,200.
- Unearned income (interest, dividends, capital gains) of more than $1100.
- Unearned income over $350 AND gross income of more than $1100
- Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.200 if under age 18)
- Other self employment income over $400, including box 7 of a 1099-MISC**
Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.
In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.
**There are actually two more rules (that you encountered). But as somebody else pointed out, they're confusing:
6. Gross income was at least $5 and his spouse files a separate return and itemizes deductions
7. Gross income (earned and unearned income) was more than the larger of: $1100 or his earned income plus $350 (up to $12,200)
