High School Minor with Earned and Unearned Income

[ChicagoJ]

Hello!  My high school daughter (16 year old) had her first "real job" in 2021 (fast food company).  She also had some babysitting/housesitting income as well as some unearned income from bank account interest and some dividends from a small account we opened in her name for college funds.  Unearned income is less than $100 annually.  I have always included her as a dependent on my tax return (I use TurboTax, of course!) and I am wondering what I need to consider for my daughter this tax season as far as my return and her return is considered.  Should I be doing my daughter's return as part of my return rather than doing it separately from my return?

I assume that I need to file (her very FIRST) tax return separately from mine (I file married/joint, with my wife), and I'd like to use the online "free/simple" TurboTax product available.  On her return, I plan on using the W2 as well as add her house sitting and unearned income.  I plan on answering (on HER return), "Someone else can claim me as their dependent" (that would be me, of course!).  

Other than plugging and chugging on her return, what else do I need to consider?  We don't really have any unusual situations (all income in one state, for example).  Do I need to do anything special on MY return?  I've always included my daughter as my dependent, and I received child credits, etc.  Can I continue to do so, if she files a separate return?  I'm afraid I'm missing something here -- any POV from folks who helped do their minor children tax returns are appreciated.  Am I thinking about this right?  

Also:  I use the CD-ROM version of TurboTax for my return.  My daughter's return will be the first time I will be doing a return online -- will I get a ".tax2022" file that I will be able to download/export onto my computer?

Thanks so much!

[xmasbaby0]

MY DEPENDENT HAD A JOB

If your dependent has a W-2 for his after-school job, summer job, etc. you do not include the information on your own return. You can still claim your child as a dependent on your own return.  He/she can file his own return for a refund of some of his withheld wages (he won’t get back anything for Social Security or Medicare), but MUST indicate on it that he can be claimed as a dependent on someone else’s return.  (Supervise this closely or prepare it for him!)

If your dependent’s earnings were over $400 and were reported on a 1099Misc or 1099NEC then he must file a return and pay self-employment tax for Social Security and Medicare.

You might also want to use free software from the IRS Free File versions:

https://apps.irs.gov/app/freeFile/