Yes, you can file to include the capital losses should there be a carryover. Also, you are correct in the respect they are not required to file. If there does happen to be a capital loss carryover you want to file to keep it current and on record for a year they might have income to use it up. For this reason you should file the tax returns for your kids small custodial accounts.
No, you cannot omit the dividend/interest income. All taxable income must be included in the tax return to accurately calculate the capital loss carryover.
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