Dependents who have unearned income, such as interest, dividends or capital gains, will generally have to file their own tax return if that income is more than $1,100 for 2021. A parent can elect to claim the child's unearned income on the parent's return if certain criteria are met.
If your dependent child made less than $1,100 in interest, dividends, and capital gains distributions combined, and that was their sole source of income, the child's income doesn't need to be reported on any tax return.
For more information please check Tax Rules for Children and Dependents
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