Pell Grant and Tax Return

[Kiki]

In 2019,   I got Pell Grant $5000, used $600 for books. My income from W2 was $2800. Total of my taxable income is $7000 (5000-600+2800). Do I still need to file Tax Return even my income is less than $12200 of Standard Deduction?

[Carl]

Based on the information you have provided, you only need to file a tax return if any taxes were withheld from your W-2 income, and you desire to get those withheld taxes refunded to you. Take note that only the amount shown in box 2 of your W-2 will be refunded. The amount shown in box 4 (social security) and box 6 (Medicare) are never refunded.

Be aware that if you have any self-employment income that gets reported on SCH C, and that income is more than $400, then you are *required* to file a tax return.

[Hal_Al · Accepted solution]

Carl's answer is correct: you are not required to file a tax return, based on the information you provided, regardless of whether you are someone else's dependent or not. 

But, for others reading this, some clarification may be needed.  The $12,200 standard deduction and filing requirement applies only to people who cannot be claimed as a dependent.

The filing requirement for people who can be a dependent is:

1.          Total income (wages, salaries, taxable scholarship* etc.) of more than $12,200.
2.          Unearned income (interest, dividends, capital gains) 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 ($12.200 if under age 18)
5.          Other self employment income over $400, including box 7 of a 1099-MISC
6.          Gross income was at least $5 and his spouse files a separate return and itemizes deductions

*Taxable scholarship, including Pell grants, is treated as earned income, but only for purposes of calculating a dependent's standard deduction.

[Kiki]

Thank you for your answers, guys!   I really appreciate them.

Another question just came to my mind. 

My mother is going to claim me as her dependent in her tax return.  

Can I still get fed tax withheld in my W2 by filling my own tax return for purpose to get refund it only?

If so, I just check on SOMEONE CAN CLAIM YOU AS A DEPENDENT on the first page of 1040 in my return?

Am I understanding correctly?

Thank you again.

[Hal_Al]

Yes, you must file a tax return to get withholding refunded.  Yes, check the box SOMEONE CAN CLAIM YOU AS A DEPENDENT on the first page of 1040 in your return.

With the tax law change, effective 2018, most student-dependents will get the same refund whether they claim themselves or not. The personal exemption has been eliminated and the standard deduction increased.

 If a dependent has sufficient income (usually more than $12,200), he can & should still file taxes. In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.  TT will check that box on form 1040.

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.

[Kiki]

Sorry but another question just came to my mind.

When I decide to file my own tax return to get Fed Withholding tax from W2,

I check box Someone can claim me as a dependent,  and My mother claim me as her dependent in her tax return.

Should Taxable Part of Pell Grant I received be reported in my own tax return?   

In my mother's return?     Or in both?

I would really appreciate if you can help me to understand.

[Hal_Al]

Q. Should Taxable Part of Pell Grant I received be reported in my own tax return  or my mother's return, or both?

A. Reported on your return.  It's your income, no one else's. 

[Kiki]

Thank you very much!