Hello there,
Last year, I opened a UTMA account for my child and earned $5,000, as indicated in my 1099. This implies that $1,250 is taxed at 0%, $1,250 at 10%, and $2,500 at my personal rate, which is 37%.
Recently, I discovered that I can deduct the $2,000 spent on my child's summer camp from the UTMA account. My question is, how should I report this deduction? I assume I need to manually adjust my UTMA 1099. However, the numbers will differ from the copy the broker reported to the IRS.
Any guidance on how to navigate this situation in TurboTax would be greatly appreciated. This marks my first year handling such matters, so your assistance is invaluable.
Thank you!
