Re: 1099-Div UTMA brokerage accts
mpweis
Level 2

Get your taxes done using TurboTax

Thank you for your prompt reply. I took the route you suggested and followed the instructions under Child's Income... under Less Common Income. We have one 1099-DIV from an UTMA for my 13 year old. Mapping the language provided in TurboTax (TT) for form 8814 to the 1099-DIV was a challenge, not having much experience with the 1099-DIV. One question I have here is re: the TT page "Capital Gains Distributions". Is the amount we enter in "28% Capital Gains" the amount in box 2d of the 1099-DIV? My 1099-DIV labels box 2d as "Collectibles (28%) Gain". At first glance I thought this might be the amount in box 2b, which I had already entered on the previous TT page, but some research changed my mind, landing me on 2d. The section 1250 and 1202 gain amounts map to my 1099-DIV more clearly, by the way. Form 8814 calculates a 10% tax on the amount over $1,100 which in my case was not a significant amount. However, if I had chosen to file a separate return for her, I would have to pay for another return? The TT Deluxe CD cover states that 5 federal e-files are included. Wouldn't that cover my MFJ return and the one for my daughter, should I choose to go that route?
 
My other daughter (age 10) also has a 1099-DIV from an UTMA but the unearned income is less than $1,100. She has no earned income like her sister. A TT help topic indicates I don't need to file a separate return for her. Also on my return TT advises me not to add her income under Less Common Income like I did for her sister. Is it true that the IRS is not interested in me reporting this daughter's unearned income?
 

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