Dividends and capital gains

[floriatax]

My daughter is 19 years old; and she is going to file her own taxes; and I also claim her as my dependent.  When she files her own taxes, does she need to report the dividends, and capital gains in the custodial account?

[Vanessa A]

Yes.  If she is filing a return, she will need to include ALL income from ALL sources, including dividends and capital gains that are in her name.  

Since you are claiming her as a dependent,  her unearned income will be subject to the  kiddie tax.