Does my dependent Kid needs to file taxes?

[jaycha2]

My College going Kid, Aged 19 has W2 with wages $2400 with no withholding. She also received 1098-T with Box 5> Box 1 by $900. I cannot take any education credit. So I am assuming if she needs to file taxes, 1098-T would be on hers to show the extra Scholorship (900) as income.

1) Does she needs to file her OWN taxes?

2) If she does not, do I need to show her earning/scholarship with her parent's filing?

Apologies if it is a very basic question, first time encountering it

[CesarJ · Accepted solution]

If your daughter is a student under age 24, she typically ddoesn't not need to file her own federal tax return unless her earned income exceeds $15750 or her unearned income is over $1,350. In this specific case, her total income of $3,300 is well below those thresholds. However, there are a few important points to consider:

• Taxable Scholarships: The $900 excess from the 1098-T is treated as earned income for filing purposes.
• Withholding: If any federal tax was withheld on her W-2, she should file a return to claim a refund.
• Parental Reporting: You don't include her income on your return, but you can still claim her as a dependent.