This sounds like it is the Kiddie Tax (KT) situation
she must file a return if her gross income (unearned income) is $1300 or more. for this purpose gains but not losses from stock sales are included in gross income. If reporting is required the parent can not include her income on their return using form 8814 because of the stock sales. if she's required to file the return must include form 8615. This form requires that the parents complete their return first because info from that is needed for this tax form
how is her unearned income is taxed. This is not the same as the filing requirement
1) 1st $1300 is not taxed
2) $1300-2600 taxed at child's rate
3) over $2600 taxed at parents' rate.
