If the child has earned income reported to them on a W-2 or 1099-MISC, then they "may" be required to file their own tax return. This *DOES* *NOT* mean you can not claim them as your dependent. The fact is, you "CAN" claim them as your dependent.
The child is required to file a tax return if:
- They have more than $12,300 of earned income reported to them on a W-2
- They have more than $400 of self-employment income.
If they don't meet the requirement to file a tax return, they can still file one if desired. Even if they don't meet the filing requirements, if they had any taxes withheld from their W-2 income (box 2 of the W-2) then they should file a tax return anyway to get those withheld taxes refunded to them.
But regardless, you can still claim the child as your dependent weather they file a tax return or not. If the child files then they "MUST" select the option for "I can be claimed on someone else's tax return" when the child is completing their own return.
Overall, if the child received a W-2 or 1099-MISC then I would recommend they file a tax return no matter what; even if they are not required to. This is because many colleges are absolutely clueless when it comes to this stuff, and they "insist" on the student providing a tax return as proof they reported their income to the IRS as a part of their qualification process for FAFSA and other education assistance. It just makes things easier.
