My kid is under 16 and has UMTA account and got divident income around $700 [no withdrawal] and no other W2 income. Do my kid require to file a seperate tax return or I as guardian can put income under schedule B ? Thanks in advance
Hello,
Please see this publication:
If your child's only income is interest and dividend income (including capital gain distributions) and totals less than $11,000, you may be able to elect to include that income on your return rather than file a return for your child. See Form 8814, Parents' Election To Report Child's Interest and Dividends.
Your child is not required to file. If the amount is under $1,100, the income is under the filing requirement. One of the criteria is that the child must be required to file a return.
Purpose of Form
Use this form if you elect to report your child’s income on your return. If you do, your child will not have to file a return. You can make this election if your child meets all of the following conditions.
• The child was under age 19 (or under age 24 if a full-time student) at the end of 2021. “Student” is defined below. • The child’s only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.
• The child’s gross income for 2021 was less than $11,000.
• The child is required to file a 2021 return.
• The child does not file a joint return for 2021.
• There were no estimated tax payments for the child for 2021 (including any overpayment of tax from his or her 2020 return applied to 2021 estimated tax).
• There was no federal income tax withheld from the child’s income. You must also qualify.
Single dependents—. You must file a return if any of the following apply.
1. Your unearned income was more than $1,100.
2. Your earned income was more than $12,550.
3. Your gross income was more than the larger of— a. $1,100, or b. Your earned income (up to $12,200) plus $350.