When does my child need to file a tax return to report investment income?
If your child had investment income for 2022, a return will need to be filed if any of the following apply:
Unearned income includes taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, and distributions of unearned income from a trust.
Earned income includes salaries, wages, tips, professional fees, and taxable scholarship and fellowship grants.
Gross income is the total of your unearned and earned income.
See the Instructions for Form 1040 for more information on who must file a return.
However, you may elect to report your child’s unearned income on your return. You and your child must meet certain conditions to qualify for this election. See IRS Publication 929—Tax Rules for Children and Dependents for more information.
The information provided is not intended as a source for tax, legal or accounting advice. Please consult with a legal and/or tax professional for specific information regarding your individual situation.