College Student Passive Income

[laurencalyssa]

I am a first year college student. I have income from stocks that my parents bought for me but didn't have any active income or wages from 2019. If I have no earned income, but I have dividend income of $8000, do I still have to file taxes? 

[rjs · Accepted solution]

I assume you are a dependent of your parents. If so, you are required to file a tax return because you have unearned income (i.e. investment income) of more than $1,100. It doesn't matter whether your parents actually claim you as a dependent. If they can claim you, you are required to file. When you prepare your tax return, be sure to check the box that says someone can claim you as a dependent.

If no one can claim you as a dependent, you are not required to file because your gross income is less than $12,200.

If you are a dependent, and you were under 24 years old at the end of 2019, you will be subject to kiddie tax because your unearned income is more than $2,200.