well, this got quite confusing because @abcdefghijk answered questions that were intended for @ccchlfields
@abcdefghijk - please do not answer anymore; I think you got your answer , right?
@ccchlfields..... @Hal_Al answered your question about the state taxes ... see below
MI and IN have a recprocal agreement on wages. She does not need to file a MI return. "A general rule of thumb is to file Indiana state taxes if your income is $1,000 or more. When it doubt, it is best to file". https://www.in.gov/dor/4731.htm
then you asked,
1099Q Box is $6700. 1098T Box 5 is $22636. Does this mean she has to file a tax return because $6400+$6700=$13,100>$12,200?
and i asked a number of questions:
1) what is the number in BOX 1 of Form 1098-T? $37200 (box 5 is $22, 636)
2) is she a dependent for tax purposes on anyone's tax return (probably yours?)
3) what are her college expenses (please list them out; tuition, room and board, required books, non-required books, etc.)
4) what is in BOX 1 and BOX 2 of form 1099-Q? Box 1 $17560 Box 2 $6710,
5) on the 1099-Q, whose social security number is on it - yours or hers? her's
I am going to assume that the answer to #2 is that she is your dependent
since Box 1 exceeds Box 5 of the 1098-T, it has no tax impact. the difference is $14,564
The 1099Q is $17560 less the $14564 leaves $2,966. As long as there are an additional $2966 in expenses that were NOT in Box 1 of form 1098-T then there is no tax impact. And presumably there were additional expenses because the payment went directly to the college to pay the outstanding bill.
the answer is she had to file a tax return IN ORDER TO GET BACK THE $445 of federal tax withholdings - that is the only reason. (her standard deduction is the $6400 + 350).
@Hal_Al - can you please weigh in as you are more qualified than me on this topic?
