Child unearned income: Brokerage statement "Summary"says 0 for each MISC Form. Details of 1099B:Proceeds"= 2725.9, but after "Cost", gain is 26.37. Does he have to file?

[MichaelL1 · Accepted solution]

Yes, as it is unearned income over $1,050.  IRS does not look at cost basis and if no return is filed they may send a notice with $0 basis and short term gain.

Dependents who have unearned income, such as interest, dividends or capital gains, will generally have to file their own tax return if that income is more than $1,050 for 2018 (income levels are higher for dependents 65 or older or blind).

[mkinrent]

Thank you. I guess I am still a bit confused because upon reading a similar situation, the response was:
"The income is the taxable portion which is the gain, not the proceeds received."  If that is the case, I would think that he would not have to file, because the gain was only 26.37.  In any case, I had wanted to report it with my (parent) return, but Turbo tax did not ask specifically about the 1099B when I ran through the Child Income section.  Is there a way to upload his brokerage statement directly to Turbo tax like I did my husbands?