The Uniform Transfers To Minors Act (UTMA), are custodian accounts that are set up by adults for minors. When the minor reaches age 18-21, depending on the state, the beneficiary (you), take control of the account. The account is now your responsibility to manage and if you file a tax return you are required to include the interest that is shown on your 1099-B. The IRS gets 1099-B statements for every taxpayer, and when we file our tax returns, the IRS matches what they have with what we report on our tax return. To report this on your tax return using Turbotax, please do the following:
• Sign into Turbotax and open your tax return
• Select the Federal Taxes tab at the top of your screen
• Now select Wages and Income
• Scroll down the page to the “Investment Income” section
• Select “Start” to the right and go through this section entering the information from your 1099-B.
