Does this kid need to file a return?

[joanmcq]

Ugh, ugh.  So I get the kid's statements mixed up all in with dad's.  Kid has $109 in dividend income and two stock sales.  Stock sales are a total of $1083 in proceeds, sold for a loss all Box A.

Someone please tell me I don't have to file the kid's return.

[Slippery Pencil]

If the proceeds are reported, I doubt it.  A client sends me their granddaughter's brokerage statement mixed in with their stuff.  In 2020 she had $200 in dividends and $2700 in proceeds w/ a $6 loss.  In 2019 she had $150 in dividends and $3600 in proceeds w/ a $32 loss.  I didn't prepare a return for her either year and they haven't heard from the irs about it.  I'm assuming the irs computer would have spit out a letter by now. 

[jklcpa]

In determining if filing is needed, gross income includes cap gains but not cap losses, so in both posts above, no federal filing would be necessary.  Look to the state requirements also though. 

[michaelmars]

if you don't file you lose the cap loss carryover

 

[Abby Normal]

7 hours ago, michaelmars said:

if you don't file you lose the cap loss carryover

 

I don't think that's true. The IRS doesn't track you carryovers.