My 16 year old daughter made approximately $5,500 in 2021 in NYS and filed exempt on her W4s. She is also a full time student. Do I have to file taxes for her?

[xmasbaby0]

If she had no tax withheld from her pay, she cannot get  refund.   And she falls below the requirement to file a federal return.   I am not so sure about NY---she might need to file a NY return.   You do not put her income on your own tax return.  She can still be claimed as a dependent on your own tax return even if she earned some money.

[Hal_Al]

No.  If it's all W-2 wage income, she does not need to file a tax return, if her income is under $12,550. 

There are different filing thresholds for other types of income.  Read on for details.

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 2020 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
2.          Unearned income (interest, dividends, capital gains, unemployment) of more than $1100.
3.          Unearned income over $350 and gross income of more than $1100
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12,400 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.

*If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.