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March 22, 2022
Question

My teenager earned $1650 working part time last year and has a 1098-T with scholarship info ($2100)for a class taken. Does she need to file a return?

  • March 22, 2022
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1 reply

March 22, 2022

You do not report your daughter's income on your return.

 

You can claim her as a dependent and can claim her education credits (reported on her form 1098-T) such as the American Opportunity credit or the Lifetime Learning credit.

 

If her income is wages reported on form W-2, she is not required to file a tax return as she earned less than $12,550. She can also add her scholarship on her tax return. Her tax liability will still be 0. However, if she had taxes withheld, she can file a tax return to claim a refund.

 

If she files a tax return, she has to indicate in TurboTax that she can be claimed as a dependent by someone else.

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Hal_Al
Employee
March 22, 2022

Your dependent child must file a tax return for 2021 if he had any of the following:

  1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
  2.          Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) 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 $2300 ($12,550 if under age 18)
  5.          Other self employment income over $432, including money on a form 1099-NEC

 

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.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.