My minor child has received both a 1099b for $1500 and a 1099DIV for $400- can this all go on my return or do they need to do their own?

[TomYoung · Accepted solution]

They need to file their own income tax return. 

The upper limit with respect to unearned income before a minor has an income tax return obligation is $1,050.  If there was no 1099-B involved then you could file all that income on your own income tax return - though generally it's advised not to do so.  But the 1099-B does mean your child must file their own income tax return.

Tom Young

[PB11]

I have similar question for year 2020.

My kid has $200 of income in 1099-DIV and $300 of income in 1099-B. Do they need to file their return, or do I need to include it on my returns, or I can skip it all together?

Will there be any tax on this amount?

If they need to file their return, can I do it for them under my TT login? In other words, can I file 2 different returns under my login, or do they need their own login and payment method?

Thanks.

[MarilynG1]

@PB11 Yes, your child would need to file their own return with a 1099-B. 

If you are using TurboTax Online, you will need a separate account for them.  In TurboTax Desktop, you can file up to five returns.

Refer to advice from @TomYoung above. 

Click this link for more info on Filing a Child's Tax Return.

[PB11]

Thanks Marilyn,

So just to confirm, even if my son's income of $500 is less than the threshold $2200. Do I need to file returns? 

Do $300 of capital gains considered as earned income or unearned income?

[DawnC]

Capital gains are unearned income.   A dependent generally needs to file their own 2020 tax return if:

• Their earned income (money you made by working) exceeds $12,400
• Their unearned income (interest, dividends, capital gains, etc.) exceeds $1,100
• Their business or self-employment net income (gross minus expenses) is at least $400
• Their gross income (earned plus unearned) exceeds the larger of $1,100 or your earned income (up to $12,050) plus $350

If your dependent child made less than $1,100 in interest, dividends, and capital gains distributions combined, and that was their sole source of income, the child's income doesn't need to be reported on any tax return.    @PB11

[Ennie]

My 2-year-old child received dividends, 1099-DIV, a little over than the 1100 threshold. 

But it is a custodial brokers account where his grandpa is holding it as the custodian.

Does my child report the income on his own tax return, or does his grandpa report it in his?

Thank-you.

[PattiF]

It depends, if the account is associated with the grandpa's SSN, then the dividends would go on the grandpa's tax return. If it is in your child's SSN, then it would be their unearned income.