My daughter is 19. She was a full student in high school in 2020. She is going to claim herself this year. Why does she need to enter her parents income information?

[Mish]

I think its because she is still considered a minor and she was not yet a college student. Even if she had an income, it may not be enough to support herself, if you were the one providing the support for her. But if she lived on her own and provided support for herself none of that information is necessary. She is still considered as a dependent since she was in high school in 2020. I would check with a tax professional. 

[JohnB5677]

Does she have money from investments?

The IRS treats your child differently depending on whether they earn money from work or through investments. All dependent children who earn more than $12,400 of income in 2020 must file a personal income tax return and might owe tax to the IRS. Earned income only applies to wages and salaries your child receives as a result of providing services to an employer, even if only through a part-time job.

The rules change when your child receives income from sources other than employment, such as interest and dividend payments. When the 2020 total of this type of income exceeds $1,100, then a return must be filed for your child.

If your child’s unearned income only consists of interest and dividends, then you can elect to include it on your own return and combine it with your income.