Re: 1099-Div UTMA brokerage accts
Employee Tax Expert

Get your taxes done using TurboTax

Yes, there is a requirement for the child to file a return however, I recommend you look at the option of including the child's unearned income on your return. You won't need to pay for another return.  Here is applicable IRS Publication.  Also, here is an extract that applies.  In TurboTax, in the "Income & Expenses" tab scroll down to "Less Common Income" and there you will find the "Child's Income" topic.  

 

Parent's Election To Report Child's Interest and Dividends (Form 8814)

You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. If you do, your child won't have to file a return.

You can make this election only if all the following conditions are met.

  • Your child was under age 19 (or under age 24 if a full-time student) at the end of the year.

  • Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends).

  • The child's gross income was less than $11,000.

  • The child is required to file a return unless you make this election.

  • The child doesn’t file a joint return for the year.

  • No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and SSN.

  • No federal income tax was withheld from your child's income under the backup withholding rules.

  • You are the parent whose return must be used when applying the special tax rules for children. (See Which Parent's Return To Use , later.)

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