Q. Do I need to file taxes or a return?
A. No. As you surmised, since the amount, that is potentially taxable, is less than the $12,550 (2021 threshold), you are not required to file a tax return*. That assumes you have no other income.
HEERF grants are neither taxable or reportable.
*A dependent must file a tax return for 2021 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
- Unearned income (interest, dividends, capital gains, unemployment) 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 $2300 ($12,550 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
