I have a dependent that has investment accounts for which they get tax forms. I cover 50% of their expenses. Do they have to file individually? or can I still claim them?

Anonymous · ‎June 4, 2019

I'm curious how to have their forms filed if I claim them as a dependent. Would I be able to input their tax form information on my return since I claim them?

ChelsiE2 · ‎June 4, 2019

If you pay for more than half of their support (and meet all of the other requirements for claiming a dependent) then yes, you can still claim them even though your children have investment income.

How you report this income largely depends on how much it is. It sounds like you may be subject to the "Kiddie Tax". Please see below for more information regarding the Kiddie Tax and your filing requirements:

https://ttlc.intuit.com/replies/3301446

https://ttlc.intuit.com/replies/3302004

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I have a dependent that has investment accounts for which they get tax forms. I cover 50% of their expenses. Do they have to file individually? or can I still claim them?