If my daughter is in college and working does she need to file a tax return?

[VolvoGirl · Accepted solution]

They don't have to file if they only have W2 income under 13,850 (2023) but can file to get back any withholding taken out in boxes 2 or 17. But you don't get boxes 4 or 6 back. If they got a 1099Misc or 1099NEC they have to file it as self employment income no matter how small the amount.

Be sure on their return they check the box that says they can be claimed on someone else’s return.

Filing requirements for a dependent
https://ttlc.intuit.com/community/children-dependents/help/do-i-need-to-file-my-own-taxes-if-i-m-a-d...

[Opus 17 · Accepted solution]

The filing rules for dependents are complicated.  While she does not need to file a return if her only income is from work, and it is less than $14,600 (for 2024), if she also has unearned income (income not from working, like scholarships that are more than tuition, prizes, interest, gambling income, or anything else), then the rules and limits are more complicated.  The best way to determine for her situation is to use the IRS web site. 

https://www.irs.gov/individuals/check-if-you-need-to-file-a-tax-return

[Hal_Al · Accepted solution]

Q.  If my daughter is in college and working does she need to file a tax return?

A. It depends on how much she earned, whether "working" was as an employee or self employment, whether the employer withheld income tax and whether she had any other income (e.g. interest).

You do not report his/her income on your return. If it has to be reported, at all, it goes on his 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 2024 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $14,600 ($13,850 for2023).
2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1300 ($1250 for 2023). 
3.          Unearned income over $450 and gross income of more than $1300.
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2600 ($14,600 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.