Dependent adult child (college student, age 18) has unearned long term capital gains > $4000 from a stock sale and no other income. Show on our tax form or file herself?

[BoatMan0]

Filing herself requires noting she can be listed as a dependent on someone else's form - then a choice between the retracted kiddie tax vs. old "parent's bracket" method.  If it is easier to just file with our taxes, do we show it as our income or how do we report it as her income?  Thank you.

[rjs]

You cannot report your daughter's capital gains on your tax return. She must file her own tax return.

[Carl · Accepted solution]

Additionally, as a full time student for any one semester in 2019, and she was under the age of 19 (not 18) on Dec 31 of the tax year, her earnings do not matter. She could earn a million dollars (literally!) and still qualify as your dependent. Note also that there is no requirement for the parents to provide the student any support. Not one penny. The support requirement is on the student, and only the student. Third party income received by the student (scholarships, 529 distributions, etc.) do not count for the student providing their own support.