How do I report my child's investment income?
Here, we define "child" as a dependent under the age of 19 (24 if a full-time student) as of December 31, 2016.
If your child's only income is unearned income not exceeding $1,050, it doesn't need to be reported.
If your child's unearned income is $10,500 or more, s/he will need to file their own return.
Unearned income amounts between $1,050 and $10,500 are reported either on your return or your child's. Sometimes you can choose which return to report it on, but other times you can't, and here's where TurboTax comes to the rescue:
- Open your tax return, if it's not already open.
- In TurboTax, search for child income and then click or tap the "Jump to" link in the search results.
- Answer Yes to both Any child's income? and Child required to file?
- Click or tap Continue on the next screen, Reporting Your Child's Income.
We'll walk you through a series of questions to determine if the income should be reported on your return or your child's return.