Because the unearned income is only interest, you can report the interest on your tax return and the tax will not be more than if she filed her own return. You save the cost and obvious hassle of filing a return for her.
If her only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814 instead of 8615.
Enter at Less common income / Child's income.
