Tax return for kids

[bmshah1]

My 18 year old made <3000 through combination of a summer job, a scholarship and some dividends. I'm wondering three things.

1. He received a W2 for his summer job. No federal taxes were withheld neither on his W2 nor on his scholarship. Does he need to file an individual return?

2. If he doesn't file an individual return should I show his income and dividends through my tax return. I'm claiming him as my dependent as he is a full time student.

[KrisD15]

To clarify, how much is his investment (unearned) income? (do not include scholarship income)

How much is just the scholarship income he needs to claim? 

Dependents only need to file if-

any of the following apply.
Your unearned income was more than $1,300.
Your earned income was more than $14,600.
Your gross income was more than the larger of:
$1,300, or
Your earned income (up to $14,150) plus $450.
 

[bmshah1]

@KrisD15 scholarship was 1,000. I have a custodial account for him in which he received a dividend of ~600. Should I show his income, scholarship and dividends through my return?

[KrisD15]

No, you should not claim your child's income and your child will not need to file since his income is below the filing threshold for dependents. 

(Since your son had earned W-2 income, you cannot claim his income on your return which is fine since he will not pay tax on any of his income.)

The custodial account might now be transferred to his ownership since he turned 18, depending on the state. For some states it's 18 and others it's 24.

HERE is a TurboTax link that explains when it does, and when it does not, make sense to include a dependent's income on your return.