How to file children's 1099-B / 1099-DIV / 1099-INT

[hansenbu]

Hello

I am having a hard time figuring out how i should file investment income for my daughter.  The accounts are in her name and social security number.  I am listed as a custodian.

Can I use the form 8814 for claiming the amounts listed below?

if i am able to file her investment income with the 8814 form, do i list the 1099-B income as capital gains?

My daughter (8 years old) has two investment accounts.  In 2020, she earned the following:

1099-DIV

Ordinary Dividends: $903

Qualified Dividends: $595

Capital Gain Distribution: $2401

1099-B: $4,642

[DavidD66]

No, you cannot use Form 8814 because your daughter has capital gains reported on Form 1099-B.  The only capital gains you can report on 8814 are those distributed by mutual funds and reported on 1099-DIV.  You will have to file a separate return for your daughter.

[hansenbu]

Hey David

Thanks so much for the reply.

I completely understand what you are recommending, and i had a feeling that the answer was going to be filing a return for my daughter.

In past years, i probably filed this incorrect.  I thought  (incorrectly) that her accounts were linked to my Social Security number.  I had been reporting her investment statements under my return (therefore taxing her earnings at my tax rate).

Other than creating a tax disadvantage for myself / her, is there a reason that i cannot continue to file her earnings under my return?