You do not claim it, even though you are the custodian. If it has to be reported, at all, it goes on the child's own return**. A child-dependent must file a tax return for 2018 if he had any of the following:
1. Total income (wages,
salaries, taxable scholarship etc.) of more than $12,000 ($6350 in 2017).
2. Unearned income (interest,
dividends, capital gains) of more than $1050.
3. Unearned income over $350 and
gross income of more than $1050
4. Household employee income
(e.g. baby sitting, lawn mowing) over $2100 ($12.000 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 the parent's (assuming the child is the parent's dependent) return, using form 8814. They enter at Less common income / Child's
income, in TurboTax.
