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Athos-1
Returning Member

No need to file, but TurboTax IRS FreeFile wants to file anyway

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.

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2 Replies
LenaH
Employee Tax Expert

No need to file, but TurboTax IRS FreeFile wants to file anyway

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:

  • They have more than $1,100 of unearned income.
  • They have earned income of more than $12,400.

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. 

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Athos-1
Returning Member

No need to file, but TurboTax IRS FreeFile wants to file anyway

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.

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