I received 1099-B for my child's UTMA acc. for an income of $3100. Where should i report it on the tax ? Also first certain $$ are tax free. How does TT differentiate?

[dearchinar]

First $1100 are tax free and how do i report the rest ?

[DavidD66]

You have to file a separate tax return for the child to report the investment income reported on Form 1099-B.  To do so in TurboTax, type "1099B" in to Search  and hit enter:  

• Click on "Jump to 1099b" 
• Answer  Yes  to "Did you have investment income in 2023?"  
• Click through the program until you get to "Let's import your tax info?"
• You can either start the import process or click on "Enter a different way".  
• Click to highlight the box with "Stocks, Bonds, Mutual Funds", then click on Continue.  
• Enter the name of your "Brokerage" and click on Continue.  
• Answer No to the Employee stock question.  
• Continue through screens until you come to the page with Now, enter one sale on your 1099‑B 
• Enter the transaction information reported on the UTMA 1099-B.

You report everything.  The program will determine the taxable and non-taxable portions.  

[dearchinar]

Thanks for the details.

Would not this be the same as entering my 1099-B ?

How would TurboTax differentiate that this is related to UTMA account ?

[MarilynG1]

If you're using TurboTax Online, you can start a new account under your email address for your child.

1.  Sign out of TurboTax Online.
 

2.  Select the TurboTax Online product you want to use for the second return and proceed.

3.  On the Create your account screen, set up a new login for the second return.

               o    You can reuse your email address if you want to receive e-file notifications for the second return.

               o    Up to 5 accounts can be tied to the same email address.

4.  After you've created the new account, you can start working on the second return.

Here's more info on Dependent Filing Requirements. 

[dearchinar]

Thank You.

I am using TurboTax desktop . Is there way i can attache that on the desktop version ?

[DaveF1006]

Yes, you either have an option to file on your own return or file a tax return in your child's name. The result is the same because a Form 8615 will be filed with your return regardless. Form 8615 is automatically generated in a return for this type of return to determine taxable amounts of the 1099B for the parent's as well as the child. If you file their return with your own, you will avoid having to make 8615 entries regarding your own income as the information will already be populated in your return. On a separate return, you will manually need to record this income and other pertinent information when it is asked for in the interview. 

If you are using Turbo Tax desktop, you may file this as a separate return within the program. You are allowed to add as many as 100 returns in the program but there is an efile limit of 5 returns per desktop product. As you enter information about your child, be sure you indicate that he/she is a dependent of someone else. This will generate an 8615 in the return and this will be taxed at your child tax rate on $1250 worth of income and at your tax rate for any portion over $2500.

If you choose to file with your own return, you can do so by:

1. With your return open, go to Federal Taxes.
2. Wages and income
3. Less Common Income
4. Child's income (Under 24)

As an FYI, you may wish to prepare your return using both methods I suggest just to see what the overall outcome is between the two returns to choose what may be right for you.