100-DIV for my children

[darchuleta42]

I have a 1099-DIV for my 13 and 11 children (1 each), to which I am the custodian.  Do I claim this in my taxes, and pay tax on the dividends?

[MargaretL · Accepted solution]

It depends on the amount on the 1099-DIV.

If your child's dividends are less than $1,050, it doesn't need to be reported at all- on yours or your child's income tax return. 

If your child's unearned income is $10,500 or more, s/he will need to file their own return.

If your child's unearned income is between $1,050 and $10,500 - you can choose to report the dividends on your return or your child's. 

 Here's data entry in TurboTax:

1. Federal Taxes
2. Wages & Income
3. Scroll down to Less common income, select Child's income (under age 24) and follow the prompts