It depends on the type of income reported on the K-1.
If your child's only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.
But since your child has income on a K-1, you are not eligible. He has to file his own return but he does not have to claim his own exemption unless he/she provides more than half his/her own support..
If you (or someone else) can claim the child as a dependent, use this chart to see if he/she must file a return. In this chart, unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust. Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants. Gross income is the total of your unearned and earned income.
The dependent must file a return if any of the following apply.
- Their unearned income was over $1,100.
- Their earned income was over $12,400.
- Their gross income was more than the larger of—$1,100, or • Their earned income (up to $12,050) plus $350
- Other self employment income over $400, including box 7 of a 1099-MISC
Please refer to the following link for additional information:
Dependent received a k-1 from trust
