Do I need to report my daughter's interest and dividends on my return?

[Struggling-with-child-income]

My daughter is a dependent age 8, head unearned income only and had less than $1,050 in unearned income in 2016.  It does not appear that she needs to file a separate return.  However, do I need to report her interest and dividends as income on my return?

[MaryK1 · Accepted solution]

No, if her unearned income is less than $1050 you do not have to report her dividend and interest income on your return.  If she had more than $1050, you have the option to file a separate return for her OR you could include it on your tax return.

[Carl]

If it needs to be reported somewhere(the cutoff is $1050) she can do her own, or you can include it on yours since it's all unearned income. You enter it under the Personal Income tab in the Less Common Income section. There's a selection under that heading for "Child's Income (Under Age 24)" and you can enter it there.

Note that by reporting the child's income on your tax return, it will be taxed at *your* tax rate.