Helping my 22 y.o. daughter with taxes. She's a dependent for 2020 on my taxes, now lives out of state. She was a full-time student for spring semester, then moved home for a few months.
She only made $5420 part-time, no taxes withheld, no estimated taxes paid. Interest income $187 (savings bonds redeemed). Negative investment income -$236 (funds sold).
No taxes owed, no refund coming. -- same for both state returns. So why doesn't the program say "Filing is optional"? Any reason to file anyway? Thanks, community - appreciate the help.
It says filing is optional because she does not have to file a tax return. Your daughter made under the threshold and did not have any taxes withheld.
Generally, single dependents must file a return if any of the following applies to their income:
She does not need to file a return since she does not meet the requirements and would not be getting a refund of taxes withheld.
Thank you for the quick response. Actually, the software did not say that it was optional -- the process just moved along to e-filing with no suggestion that she doesn't need to. At that point, we exited, as I couldn't find any reason for her to file.
I just wanted to confirm that it isn't necessary, and was wondering why the software didn't say anything. Thanks again.