Filing a UTMA custodial trust account for my son's child. What tax forms do I need to use to complete the filing of my's grandsons tax return. He does have capital gains taxes without personal income

[sfsneuro]

Tax return for my grandson who has a UTMA custodial trust account, I need to know how to proceed filling out his tax return. I have been told that I need to fill out a business tax trust filing. Do I need to do this or do need  I fill out a form on my sons account to place into his for sent all tax filing for finding out his tax Account. I need to understand the process. I was told that I needed to fill out a business trust account for my grandson, but is asking for any EIN number and there is no such thing for an UGMA account

[MaryK4]

You do not need to file a separate tax return for a UTMA- you can file under the child's name and social security number.  (It is a custodial account not a trust so it does not require a 1041 Trust tax return).  You will file the capital gains on Schedule D and Form 8949- TurboTax will walk you through the entry.  You may need to include a Form 8615 to calculate the tax if there is unearned income greater than $2,700.

The first $1,350 of unearned income is tax-free. The next $1,350 is taxed at the child’s rate. Income above $2,700 is taxed at the parents' marginal rate (Kiddie Tax).  If this applies, you can opt to file the unearned income (interest and dividends) on the parent's return, but you would still need to file a return in the child's name to report the capital gains.