I have 2 dependents in college; 1 works and 1 does not. I know the one that works has earned enough to require she files her own taxes even though she lives at home. The youngest one that is not employed received substantial scholarships and a disbursement from the 529 account I set up for her (they both did). Do we have to file a separate tax return for the youngest if she had no earned income for the year and if not, how do I handle the tax forms she received from her university?
