My 19 year old son has a UTMA with around $1000 in dividends and $3200 in interest. He also made $5000 from a job. My understanding is that the first $1300 of UTMA earnings are tax free, the next $1300 is taxed at his rate and beyond that, it is taxed at our rate. My question is where do I do this on Turbotax? When I put in his earned income on 1099-Div and 1099-Int, it doesn't ask if it is a UTMA account, so how does Turbotax know to do the exemption and different rates?
What am I missing?
