We're custodians of an investment account for each of our two sons...we were given 1099-DIV and 1099-Bs from the broker. Since we're trustees, is this on our 1040?

[100watts]

My wife is the custodian on both

[Hal_Al · Accepted solution]

No.

If your child's only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering his income on your return, using form 8814. 

However, since a 1099-B was received, You do not report his/her income on your return. If it has to be reported at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2016 if he had any of the following:

1.         Total income (wages, salaries, taxable scholarship etc.) of more than $6,300 (2016).

2.         Unearned income (interest, dividends, capital gains) of more than $1050* (2016).

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

4.         Household employee income (e.g. baby sitting, lawn mowing) over $2000 ($6300 if under age 18)

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

* Even if the actual capital gain was less than $1050, you may want to file a return, anyway, if the 1099-B amount is significant, to ward off an IRS inquiry.