f your student is required to file their own return, you can still claim them as a dependent, but you won’t be able to claim their income on your return. This should not affect what you can and can’t claim for college expenses.
If your student made less than the standard deduction amount ($12,400 in 2020), they are not required to file their own tax return, and you do not have to claim their income as a parent.
If your child’s only income is unearned income (interest, dividends, capital gain distributions) and is less than $10,500, you may be able to include that income on your return. Your child, in turn, would not have to file their own tax return.