Yes. But, only if each of them has more than $1050 of total income. If less, the income goes unreported.
If your dependent child is under age
19 (or under 24 if a full time student), he or she must file a tax return for
2016 if he had any of the following:
1. Total income (wages,
salaries, taxable scholarship etc.) of more than $6,300 (2016).
2. Unearned income (interest,
dividends, capital gains) of more than $1050 (2016).
3. Unearned income over $350
and gross income of more than $1050
4. Household employee income
(e.g. baby sitting, lawn mowing) over $2000 ($6300 if under age 18)
5. Other self employment
income over $400, including box
7 of a 1099-MISC
If his 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. Enter at Less common income / Child's
income.
But, it is usually best for him to file a separate return, as qualified
dividends and capital gain distributions could be taxed at a higher rate on the
parent's return.
