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Retirement tax questions
If a child‘s only income was interest, dividends, or capital gains, the parents can choose to report the income on their own tax return.
However, that rule does not apply to distributions from an inherited IRA. Each child must file their own tax return in their own name. They will most likely be subject to the kiddie tax.
https://www.irs.gov/taxtopics/tc553
because TurboTax does not have a free online option that includes IRAs, you may want to purchase TurboTax from a CD or download to install on your own computer (which allows you to prepare and e-file up to five tax returns) or you may wish to go to the IRS free file website to find another online provider that will allow you to prepare free returns for your children.
December 31, 2022
7:43 PM