if the only income the child had was from capital gain distributions and dividends you could report your child's income on your return - form 8814 - see eligibility requirements below. since the unearned income is less than $2200 and you get an $1100 exemption you would pay a tax of $10 on the $100 that's taxable ($1200 received less $1100 exemption).
for $10 you save yourself the trouble of preparing a separate return for her. on a separate return based on $1200 of unearned income te tax would be $11 but if $1199 the tax would be $9
be warned if you have a state income tax she may require you to file. to e-file it, would require you to prepare and file a federal return for her
Parents' Election To Report
Child's Interest and Dividends
(Form 8814)
You may be able to elect to include your child's interest
and dividend income (including capital gain distributions)
on your tax return. If you do, your child won't have to file a
return.
You can make this election only if all the following conditions are met.
• Your child was under age 19 (or under age 24 if a
full-time student) at the end of the year.
• Your child had income only from interest and dividends (including capital gain distributions and Alaska
Permanent Fund dividends).
• The child's gross income was less than $11,000.
• The child is required to file a return unless you make
this election.
• The child doesn’t file a joint return for the year.
• No estimated tax payment was made for the year, and
no overpayment from the previous year (or from any
amended return) was applied to this year under your
child's name and SSN.
• No federal income tax was withheld from your child's
income under the backup withholding rules.
• You are the parent whose return must be used when
applying the special tax rules for children
