clydewolf

MADC,

Jim_Ohio has it right. We only get a refund when our refundable tax credits plus what we have paid is more than our tax bill.

You will want to file a 1040 for each child showing their capital loss or gain on on Schedule D.
If a Schedule D loss, that will be a negative number on 1040 line 13 up to $3,000, and will reduce the child's other income. If they do not need the $3,000 reduction the capital loss can be carried over to future years to be used first to offset capital gains and then up to the $3,000 per year of other income.

There is some talk in congress of raising the $3,000 per year limit for offsetting other income.