Does my child need to file tax return for form 1099-B with $1090 capital gains from selling stocks?

[raybeyond]

UTMA account. My child is a minor.  Year 2021 tax filing.

[PattiF]

No, a tax return does not need to be filed for the $1090 capital gains income. The limit of unearned income for a minor is $1,100 as noted in the post by Bsch4477 below. The income is below the threshold for filing and you do not need to file a return for your minor child.

[Edited 02/27/22|4:17 PM PST]

@raybeyond 

@Bsch4477 

[Bsch4477]

If it is a gain from a stock sale the IRS computer will see the proceeds but not the capital gain.  Might be better to just file her return to avoid any question.  Be sure to check the box saying that someone else can claim her. 

[Bsch4477]

@PattiF  The $2,200 amount reffers to Kiddie tax. 

Table 2. 2021 Filing Requirements for Dependents

• Your unearned income was more than $1,100.
• Your earned income was more than $12,550.
• Your gross income was more than the larger of— $1,100, or. Your earned income (up to $12,200) plus $350.

[Mike9241]

gross income includes gains but not losses from security sales

[raybeyond]

Thanks for your respond.  My child is only 8 years old.  He doesn't work.  I only have UTMA account for him.  I sold stocks in his UTMA account .  I received form 1099-B for my child.  Form 1099-B shows that he has $1090 gain.  So I don't need to file tax for him?  Also, is capital gain from selling stocks considered unearned income?  Thanks! 

[Bsch4477 · Accepted solution]

It is unearned income 

You don’t have to file a return. In the unlikely event that the IRS questions the gain because their computer sees  the gross proceeds, it will be a simple matter to document the small gain.