Yes. The unearned income is what is causing a taxable income by design. You must include it on the tax return.
Be sure to select that he is being claimed by someone else and it should happen automatically. Once you complete the tax return you should see the correct standard deduction by using Preview My 1040 (click the link).
Congress deliberately makes this happen to prevent parents from harboring income in the name of their children. If they are claimed as dependents then they will pay tax when dependents meet the threshold to be required to file.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
