My two children have investment accounts. Do I need to claim their dividends?

christy-henegar — Thu, 06 Jun 2019 10:33:40 GMT

Yes. But, only if each of them has more than $1050 of to...

Hal_Al — Thu, 06 Jun 2019 10:33:42 GMT

Yes. But, only if each of them has more than $1050 of total income. If less, the income goes unreported.

If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2016 if he had any of the following:

1. Total income (wages, salaries, taxable scholarship etc.) of more than $6,300 (2016).

2. Unearned income (interest, dividends, capital gains) of more than $1050 (2016).

3. Unearned income over $350 and gross income of more than $1050

4. Household employee income (e.g. baby sitting, lawn mowing) over $2000 ($6300 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 your return, using form 8814. Enter at Less common income / Child's income.
But, it is usually best for him to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return.

topic My two children have investment accounts. Do I need to claim their dividends? in Investors & landlords

My two children have investment accounts. Do I need to claim their dividends?

Yes. But, only if each of them has more than $1050 of to...