When filing for a dependent with unearned income, why can't Schedule D, Line 15 be a negative number (if it is on the parents' return)?

[LindaS5247 · Accepted solution]

A dependent’s Schedule D, Line 15 (Capital Gain Net Income) generally cannot be a negative number because it is for net gains, which must be zero or positive to calculate the tax correctly on Form 8615. A negative value on line 15 would indicate a loss, which will not trigger the "kiddie tax" intended to apply to positive, unearned income.

See also:

What's the Kiddie Tax?

What is IRS Form 8615: Tax for Certain Children Who Have Unearned Income

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