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Hal_Al
Employee
June 1, 2019

If his/her 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. 

  However, using Form 8814 may benefit a few parents who are not getting the full Child Tax Credit, as the credit will offset the total tax amount, including the child’s portion of the tax.