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posted May 19, 2021 9:17:48 AM

I gifted/transferred stocks to my 14 year old daughter's Fidelity Youth Account. She sold some shares. The Cap Gains amounted to $6,000 . Does she file her own taxes?

the Youth Account is a teen-owned brokerage account. It is owned by the minor, who makes all the investment decisions. This is unlike an UGMA or UTMA account where the custodian makes the investment decisions.

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1 Replies
Level 15
May 19, 2021 10:56:27 AM

Yes, your daughter has to file her own tax return.


It doesn't matter who makes the investment decisions. Whether it's a Youth Account, UGMA, or UTMA account, the minor owns the securities. Any income from the account is the minor's income. I assume your daughter is your dependent. Since she has unearned income of more than $1,100 she is required to file a tax return and report all her income.