Does a student have to file tax returns for FAFSA when their income is only $1,700 for the year?
No, since your income is less than the $6,300 standard deduction for 2015, you’re not required to file an income tax return with the IRS. However, you still have to report the income on the FAFSA.
Did the student have federal tax (and PA tax) withheld? Does the parent qualify for PA tax forgiveness, which would also qualify dependent child for tax forgiveness? Then he should file to get a refund of the tax withheld.
MAYBE
It depends on the type of income. The $6,300 standard deduction mentioned above is for EARNED income.
I’m not incredibly knowledgeable, but I can describe my own situation. I made less than the standard dependent deduction of $4,100. By filing, I got back the $100 or so I paid in federal and state taxes. The twenty minutes was worth it to me. It also made it easier to fill out the FAFSA/PROFILE.
Is the $1700 on a W-2?
Yes, on a W-2, but no taxes have been withheld.
It may be easier to file the return and do DRT for FAFSA than obtain a non filer statement from the IRS (assuming the kid will be in college next fall).