Level 1

Question

Tax REturn filing for a dependent

Forum|Forum|1 year ago
February 28, 2025
3 replies
9 views

Should I file a tax return for a dependent child, 10 years old with the following income

Interest Income

Dividend income 580

Stock Sales

Bais of 10000.00

Sale of 14,000.00

Gain on this sale 4000.00

ProSeries Professional

This topic has been closed for replies.

IRonMaN

Level 15

That's an easy one to research if you just check the 1040 instructions under filing requirements.

Slava Ukraini!

sjrcpa

Level 15

And read Form 8615 instructions, too, while you're in the virtual library.

The more I know the more I don’t know.

T

Terry53029

Intuit Community Champion

Suggest you research pub 929. here is link.

https://www.irs.gov/publications/p929#en_US_2021_publink1000203737

ljr

Level 9

I'll make it easy for you

you must file a return if the dependent has a stock sale

BobKamman

Level 15

You don't have to file a tax return just because the child had a stock sale. However, a return is required when there is a $4,000 gain. If there is a loss in a "covered" transaction, IRS doesn't care.

T

Terry53029

Intuit Community Champion

@BobKamman as you said they don't have to file just because they received a 1099B, but pub 501 suggest they do just to ensure they don't get a letter from IRS.

Form 1099-B received.

Even if you aren't required to file a return, you should consider filing if all of the following apply.

You received a Form 1099-B, Proceeds From Broker and Barter Exchange Transactions (or substitute statement).
The amount in box 1d of Form 1099-B (or substitute statement), when added to your other gross income, means you have to file a tax return because of the filing requirement in Table 1 or Table 2 that applies to you.
Box 1e of Form 1099-B (or substitute statement) is blank.

In this case, filing a return may keep you from getting a notice from the IRS.

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