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February 5, 2023
Question

How to include child's Capital losses In your Tax return

  • February 5, 2023
  • 1 reply
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I have custodian investment accounts for my kids. They have dividend and capital gains but I also sold some of their assets which resulted in capital loss.  Can I account for them in form 8814 or do I need to file their return separately?

1 reply

February 5, 2023

It depends, the way to file taxes for unearned income(Form 1099-DIV and Form 1099-INT) for children is determined by how much they've made. 

  • If your child's only income is unearned and doesn't exceed $1,150, it doesn't need to be reported
  • If your child's unearned income is between $1,150 and $12,950, they may need to file their return, but in certain situations, this income can be included on your return
  • If your child's unearned income is $12,950 or more, they need to file their return

TurboTax will guide you through the steps of the process. 

 

  1. Open or continue your return
  2. Search for child income and select the Jump to link
  3. Answer Yes to both Any Child's Income? and Child Required to File?
  4. Select Continue on the Reporting Your Child's Income screen
  5. We'll ask you a series of questions to determine if the income can be included on your return or if your child needs to file their own return

 

 

But, the exception to this is If the income includes a 1099-B, sale of securities. This needs to go on a separate tax return for the child.

 

Here is a TurboTax Help article with instructions for entering a 1099-B.

 

 

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February 24, 2023

If my child’s return net out to no taxes , are they required to file their own return?

February 24, 2023

Technically, no but in certain circumstances it may be beneficial to file in instances where federal tax / and or state tax was withheld on either a  1099DIV or a 1099B inorder to get a refund for those taxes that were withheld but he wasn't required to pay. 

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