My 18 year old had over $12,000 of capital gains in a UTMA fund used to pay for college. Does she need to file? If so, can I still claim her as a dependent?

rossthal · ‎June 4, 2019

IsabellaG · ‎June 4, 2019

Yes, she'll have to report this income on her tax return. You can still claim her as a dependent if she lived with you for more than half the year (being away at college still counts as living with you) and if she didn't provide more than half of her own support.

This unearned income will be subject to the Kiddie Tax which means that even though she's reporting it on her return, it will be taxed at your marginal tax rate.

TurboTax will help you figure this out on her return.See this FAQ for more information.

https://ttlc.intuit.com/replies/3302004

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My 18 year old had over $12,000 of capital gains in a UTMA fund used to pay for college. Does she need to file? If so, can I still claim her as a dependent?