Q. Does my daughter need to file a tax return because she received a Form 1098-T?
A. No.
Q. My daughter had minimal income (like $1,000). Does she need to file a tax return?
A. No.
Q. If she was required to file, does she need to include her Form 1098-T and my Form 1099-Q information on her tax return?
A. No.
The 1099-Q and the 1098-T are only informational documents. The numbers on them are not required to be entered onto your (or your student's) tax return. However receipt of a 1098-T frequently means you are either eligible for a tuition credit or possibly your student has taxable scholarship income. You claim the tuition credit, or report scholarship income, based on your own financial records. When claiming a tuition credit, you (the parent) do need report, on your return, that your student did get a 1098-T.
You do not report your dependent's income on your return. If it has to be reported, at all, it goes on his/her own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2022 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,950 (2022).
- Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1150 (2022)
- Unearned income over $400 (2022) and gross income of more than $1150 (2022)
- Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,950 if under age 18)
- Other self employment income over $432, including money on a form 1099-NEC
