If a dependent child receives unearned investment income during the tax year, they may have to file a Form 1040 tax return.

Children may be subject to the "Kiddie Tax" which taxes their investment income at the parents tax rates via IRS Form 8615.

In some cases, the parents can elect to report the investment income on their own tax return, which relieves the child of having to separately file their own Form 1040.

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