@curious4913 On your response ---
I beg to disagree with "adding her interest + capital gains income as other income - as advised by other experts on this forum." It is plain and simple willful disregard of law --- IRS requires the same treatment of categories of income as you would if these were US sourced. "OTHER" category is for income that is not categorized under wages/ self-employment / Interest/Dividend/ supplemental incomes ( such as rental, oil-lease or similar, copyright etc. etc. ), income from barter/exchange, non-incorporated business income etc. etc.. Thus incidental income from wager/bets/ hobby etc. are generally grouped under "Other" income. Please don't follow these "experts" just because the source of income is foreign does not make it "other"
The assets / stocks acquired and sold only need to be reported when sold -- not while holding the stocks. Thus if she bough 80 different stocks at different time -- you need to have record of all those transactions . When you sell one of more of your holding you report that to the IRS ( you will require, name of asset, number of shares, price you paid , how much you sold it for , when you acquired and when you sold -- thus determining whether it gets long term ( capital ) or short term ( ordinary ) rates on the gain.
Also note that economic stimulus is not taxable income. However, her Social Security income and any other pension(s) may be ( does she not get Social Security and if not why not ? )
From your questions and responses , I suggest you use the services of a tax professional, either in the USA or in India -- there is lot of unknowns in what you have described so far. At least for the first year ( how did she file for 2019 ? ). I am perfectly willing and happy to help but I am not familiar with on-line version and its capabilities. I can answer tax law questions but you have to open up the situation a lot more and this is not good in an open forum like this.
Namaste
pk
