It sounds like I was over complicating it and got confused. My main question was just pertaining to if I needed to file if I sold the mutual fund in the custodial because I thought that if you made money from selling/trading the fund you automatically were required to file regardless of the $1,100. It sounds like that isn't the case unless I am over the $1,100.
On a side note If I sell the fund now we will be nowhere near the $1,100 in unearned income so it shouldn't affect short term or long term taxes since I won't have to file a return if I have understood everything correctly.
