I know you've had three experts tell you that she does not need file. But, my opinion is that she does need to file because of the rule that applies in your seldom applicable situation (#3 highlighted below).
You do not report her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), she must file a tax return for 2024 if she 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 ($14,600 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
Gross income is the $3K + $879. The $879 is the Unearned income over $450.
She has to file because tax will be accessed. Her standard deduction is $3000 + 450 = 3450. 3879 -3450 = $429 taxable income.
