My child has $24,000 in capital gains in an UTMA account held by grandparents in my child's name. Dividends are $1,980.
Am I required to file child's own return and form 8615? Tax is paid at 15% rate? Grandparents are saying there is an exemption if child files their own return and has capital gains under $50,000, that they should not owe any taxes. I am unable to find any exemptions or other rules. Child is 13 and has no earned income. Please help.
Thanks!
Parents taxable income around 125K.
