I'm trying to determiine how to figure my son's gross income. (for the purpose of determining if he can be claimed as a dependent) He earned $4175 in wages, $142 in dividends, but had $1265 in long term realized losses from the sale of mutual funds. Do I include the losses in determining his gross income? If I can include the loss, then his income will be below $3650. He meets the other criteria for a qualifying relative.