Where do I enter info from 1099-B for my minor daughter?

[cindywisnewski]

1099-B is in the minor's SSN but TurboTax puts it under parent's info. I filed her interest and dividends as a minor on her parents acct and want to do same for 1099-B but Turbo Tax won't let me do that in the minor account place or in the 1099-B section.

[IsabellaG]

You can't include her 1099-B on your return. In fact, you can only report her unearned  income on your return if the only income she had for the year was interest, dividends and capital gains distributions (reported on a 1099-DIV).

See Figure 1 of this link, under Can You Include Your Child's Income On Your Tax Return? Also, see page 9 of this link, Parent’s Election To Report Child’s Interest and Dividends.

Instead, your child has to file her own tax return, but her unearned income will be taxed at your rate, also known as the Kiddie Tax.

[cstudinski]

So if I was to report the unearned  income on my return, the result would be I would need to file a tax return for each of my children?  Which because the unearned income would be on my return, would be a $0.00 income return just to file the brokerage transactions?  Is my thinking correct on that?

[MaryK4]

No, if you report the unearned income for your children on your tax return, you do not have to file a return in their name.  The IRS will have the information that it was reported because your return includes their information (SSN).

@cstudinski

[sidwin516]

so once i fill out my kids brokerage, i get questioned about my kids Roth IRA.  My child babysits and dog walks the neighborhood.  She get $10 a week for doing it roughly $575 a year.  Each year i just take that money and put in her Roth IRA since it is earned income.  We've been doing this for a couple years but this being the first year that she has a 1099-b, i'm now getting a warning that she isn't eligible for the roth ira since she doesn't have w2 to file it against.  

what a can of worms i opened when i decided to do an UTMA brokerage 1099-b and teach my kids the power of investing.  i should have just left their roth ira stuff and done everything through there and stuck with CD's.

[MarilynG1]

@sidwin516 You could report her income as 'self employment income' so she can make a Roth contribution. 

Type 'schedule c' in the Search area, then click on 'Jump to schedule c'.  

Click this link for more info on Self Employed Retirement Contributions. 

[VolvoGirl]

@sidwin516   You needed to be filing a return for her each year to report her self employment and to show earned income to make the ROTH IRA contribution.  And she can't contribute 100% to the IRA.  If you have self-employment income you can only contribute up to your net profit reduced by the deduction allowed for the ER portion of your self-employment taxes. See IRS publication 590A (page 39 for ROTH) https://www.irs.gov/pub/irs-pdf/p590a.pdf

You need to File the back taxes for her.  She needs to fill out schedule C for self employment and pay the self employment tax.  

[Critter-3]

If the child files a return then ALL of the child's income is reported on the child's return ... do NOT try to enter any of it on the parent's return at all.