Dependent form 8615/schedule D

[JulieG18]

We are claiming our daughter as a dependent, as she is a full-time student and has no earned income.   She did, however, receive a 1099 for unearned income and therefore is required to file.    In completing her information, TT asks for our Schedule D information, but TT didn't generate a Schedule D for us and we only have a Qualified Dividend and Capital Gain Tax Worksheet.   Do we leave the requested schedule D amounts blank and proceed without in filing her taxes?

[AmyC]

No. When a child is filing and needs the parents information, they are filling out the Kiddie Tax. She has income being taxed at your rate and the program needed to know about your capital gains. Since you have the worksheet, look for these specific lines to fill in your daughter's Form 8615 requirements:

• Net Long-Term Capital Gain: Look at Line 13 of your Qualified Dividends and Capital Gain Tax Worksheet. This usually represents the total capital gain distributions reported on your Form 1040.
• Schedule D, Line 15/16 equivalents: If you didn't have any other sales of assets (like selling stocks or property), your "Net Long-Term Gain" is simply the total of those 1099-DIV distributions.
• If the amount is zero: If you truly had no capital gains or losses of any kind on your return, then you would enter 0.

If she has no earned income and her passive income is only interest and dividends, you can report her income on your return. The tax will be a little higher reported on your return.

[JulieG18]

Sorry I'm still confused.   So TT is requesting the following:

Schedule D, line 7

Schedule D, line 15 OR Qual Div/ Cap Gain Tax wksht ln 3   (I entered this amount XXXX)

Schedule D, line 18

Schedule D, line 19

Form 4952, line 4g

I did enter the amount from line 3 on the worksheet, but I don't have Schedule D or form 4952.   I'm assuming they werent generated since we only had the one source of capital gains.   So do I leave the schedule D responses blank or enter zero?    

[NCperson]

@JulieG18 how much is the capital gains and any dividends / interest.  The kiddie tax doesn't kick in until the total income exceeds $15,750 AND the unearned income exceeds $2700 (and she only pays at her marginal tax rate, presumably zero, on the first $1350)

what is the GROSS PROCEEDS of the stock sales? 

it is possible she has a filing requirement (if the gross proceeds exceed $15,750), but she may not owe anything (if the unearned income is below $1350). 

[JulieG18]

The unearned income is $4900 interest

[Hal_Al]

Because the unearned income is only interest, you can report the interest on your tax return and the tax will not be more than if she filed her own return. You save the cost and obvious hassle of filing a return for her. 

If her 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 instead of 8615.

Enter at Less common income / Child's income.