Form 1099 DIV with Children's Name

I am assisting my brother in-law with his tax return and have a question on Form 1099-DIV. The statement has my brother in-laws name at the top with C/F after his name. Their are two 1099-DIV forms, one for each of his children with UTMA/TX, Until age 21 after their names. His daughter (20 years of age) is in college and his son (27 years old) who was his dependent until the end of 2017. 

Is it my brother in-law who should claim the 1099-DIV income on his 2018 tax return or should his children be claiming this income? Thanks

Hal_Al
Level 15

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Simple answer: the children should be claiming it.

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return.Your dependent  must file a tax return for 2018 if he had any of the following:

1.         Total income (wages, salaries, taxable scholarship etc.) of more than $12,000 ($6350 in 2017).

2.         Unearned income (interest, dividends, capital gains) of more than $1050.

3.         Unearned income over $350 and gross income of more than $1050

4.         Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.000 if under age 18)

5.         Other self employment income over $400, including box 7 of a 1099-MISC

Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.

In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.


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Thanks Hal_Al. I appreciate you assistance greatly. Have a great day and better weekend!