Qualified Divident question

Forum|Forum|2 years ago
April 5, 2024
1 reply
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Is filing of tax return required if qualified divident (Box 2 in 1099-DIV) is only $300. Moreover, the Box 1 in 1099-DIV is also $300.

Mike9241

Level 15

if that's your only income no federal return is required and it's unlikely that a state return would be required. However, filing thresholds for statesare often different than Federal.

Mike9241

RT170759Author

Level 2

It is for my daughter who is going to college. Her grandfather before he passed away, had kept some money for her and opened a brokerage account in her name and invested in some mutual funds which are still there. The $300 dividend is from that account.

She is a dependent in my return.

Hal_Al

Level 15

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2023 if he had any of the following:

Total income (wages, salaries, taxable scholarship etc.) of more than $13,850 (2023).
Unearned income (interest, dividends, capital gains, unemployment, taxable portion of 529 distribution) of more than $1250 (2023)
Unearned income over $400 and gross income of more than $1250 (2023)
Household employee income (e.g. baby sitting, lawn mowing) over $2600 ($13,850 if under age 18)
Other self employment income over $432, including money on a form 1099-NEC

If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.
But, it is usually best for him to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return.