My 17 year old daughter has a W2 for about $550 from a part time job. Plus she got into a high school program where she takes some classes at the local community college and the high school picks up the bill. So she got a 1098T for $660.
I am confused her having to file a 1040. I don't understand the limits of combined earned and unearned income for her filing. Does she need to file with this combination?
No, if her only earnings were from the W-2, then she is not required to file a return (she's below the filing threshold) unless she had taxes withheld. If she had taxes withheld then she would file to receive those back as a refund.
Keep the 1098-T for your records. Once she has graduated and moved onto college, 1098-T information is used for the education deduction/credits. These are not available to high school students.