All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Pioneer
Posts: 2
Registered: ‎04-19-2017
Accepted Solution

Can Child's Cap Gains be posted against parents' LT loss

My 16-year-old has no earned income but Utma account  has $1000 in dividends, $0 in interest, and $6200 in LT Capital gains.

Can I include his unearned income and cap gains in my return on which I have a $10000 LT capital loss carryover?

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Tax Pro
Posts: 5,431
Registered: ‎02-23-2016

Re: Can Child's Cap Gains be posted against parents' LT loss

Hi stall,

 

Welcome to the H&R Block community.

 

No, you cannot put your child's income on your own tax return.  He or she will need to file his or her own tax return and claim their own income, however they will also need to indicate on their return that they are the dependent of another taxpayer if you intend to claim them.  Note that the kiddie tax applies here because the unearned income is in excess of $2,100, so you'll need to complete Form 8615 with your child's tax return.

 

The only time you may report a child's income on your own tax return is if your child had nothing other than interest & dividends (1099-INT and/or 1099-DIV income).  If this had been the case then you would have been allowed to report the income on Form

8814 and attach this form to your tax return.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Pioneer
Posts: 2
Registered: ‎04-19-2017

Re: Can Child's Cap Gains be posted against parents' LT loss

Thanks for your response.

 

I didn't think so but I wanted to make sure.  Yep, he got hit with a big ol' kiddie tax!