Question: my 21 year old college student earned about $2,000 last year. How do we account for her income? Does she need to file separately if we take her as a dependent?

[KatrinaB · Accepted solution]

Yes. She will need to file her own tax return, in order to receive a refund of tax withheld. She will just need to indicate that she is being claimed as a dependent on someone else's tax return.