We are custodians for edward jones acconts for our grand children that havve dividends and capital gains. do wee or the grandchildren claim the incomea?

[Hal_Al · Accepted solution]

You do not claim it, even though you are the custodian.  If it has to be reported, at all, it goes on the child's own return**. A child-dependent must file a tax return for 2018 if he had any of the following:

1.         Total income (wages, salaries, taxable scholarship etc.) of more than $12,000 ($6350 in 2017).

2.         Unearned income (interest, dividends, capital gains) of more than $1050.

3.         Unearned income over $350 and gross income of more than $1050

4.         Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.000 if under age 18)

5.         Other self employment income over $400, including box 7 of a 1099-MISC

**If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on the parent's (assuming the child is the parent's dependent) return, using form 8814. They enter at Less common income / Child's income, in TurboTax.