21 year old son, full time student, no earned income. Under $3500 in dividends and under $3200 in capital losses. Where should I claim him?

[sgsunsecure]

My son has no earned income, has earned income, has capital losses.  He's a full time college student.  Do I need to claim him or can he file his own return?  How do I make TT not fill out form 8814?

[JulieR · Accepted solution]

You may still claim your son as a dependent without making the election to claim his unearned income on your return.   If you do not elect to claim his unearned income on Form 8814, you can go back through the interview by typing "form 8814" in the search box and clicking on "Jump to form 8814" and selecting "No" to the question "Any Child's Income.  If the Form 8814 has been populated in the return, you can remove the form by switching to the forms mode and deleting the form.

Your son will be required to file his own return to report his unearned income if the total of that income exceeds $1,050.00.  Additional situations where dependents must file are: 

• Earned income over $12,000 

• Gross income more than the larger of $1,050, or earned income up to $11,0650 plus $350 

• Net earnings from self-employment of at least $400. 

If he does file his own return, he will need to indicate that you will be claiming him as your dependent.

Please comment if you need additional help with this issue.

[Hal_Al]

Since he has capital losses, you may not use form 8814. He has to file the income on his own return**.

He will not owe any tax, but must file. The capital loss will reduce his income to $500, less than the $2100 "Kiddie tax" threshold.

**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.