If the dividend income is the child's only source of income, there is no filing requirement. The general rule is stated below:
Your dependent must file their own
federal tax return if any of the following are true:
- Unearned income was over
$1,050.
- Earned income was over
$12,000.
- Gross income was more than
the larger of—
- $1,050, or
- Earned income (up to
$11,650) plus $350.
If none of the above
apply, your dependent may
file a tax return to claim a refund of any federal tax withheld.
Additionally, if
your dependent has net earnings from self-employment of $400 or
more, they will be liable for FICA self-employment tax at a rate of 15.3%.
