Tax REturn filing for a dependent

[mmodbfd]

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

[IRonMaN]

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

[sjrcpa]

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

[Terry53029]

Suggest you research pub 929. here is link.

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

[ljr]

I'll make it easy for you

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

[BobKamman]

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.  

[Terry53029]

@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.

[BobKamman]

@Terry53029  I know you aren't trying to jack up your fees with unnecessary work, but let's not encourage those who do. As the IRS Pub says, you might want to file a return if

• Box 1e of Form 1099-B (or substitute statement) is blank.

That's why I said the loss would have to come from a covered transaction.  You can't have one of those with a blank Box 1e.  And please don't misquote me by saying "you said they don't have to file just because they received a 1099B."  

[Terry53029]

@BobKamman Sorry if you think I misquoted you, as you actually said  "You don't have to file a tax return just because the child had a stock sale". To me that is same as saying received a 1099B. At any rate I don't charge my clients for their dependents return whether they are, or not required to file.