Hal_Al
Level 15

Education

Q. Maybe she would have to file even if she wouldn't owe anything just to account for it?

A. No.

 

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return.  Your dependent child  must file a tax return for 2022 if he had any of the following:

  1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022).
  2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1150 (2022)
  3.          Unearned income over $400 (2022) and gross income of more than $1150 (2022)
  4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
  5.          Other self employment income over $432, including money on a form 1099-NEC

Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $12,950 filing requirement and the dependent standard deduction calculation (earned income + $400).  It is not earned income for the kiddie tax and other purposes (EIC. IRA contributions or additional child tax credit).