1099-B UTMA account, who should have it on their tax return?

Forum|Forum|7 years ago
June 6, 2019
2 replies
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We received a 1099-B & 1099-div for my son's UTMA account. Does this go on our tax return or his. He did have a PT job in 2016 that he made under $4300.

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Best answer by AnnetteB6

Transactions reported on Form 1099-B should be included on your son’s tax return. His return will also include the 1099-DIV and his wages.

The only income that would be eligible to be reported on your return instead of your son’s is dividend and/or interest income. Transactions that result in a capital gain or loss cannot be included on your personal return.

AnnetteB6Answer

Level 15

Transactions reported on Form 1099-B should be included on your son’s tax return. His return will also include the 1099-DIV and his wages.

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jmallen72

Level 2

My question is about not reporting capital gains, only interest and dividends, on parent's return. If I am using form 8814 to report, then there is a specific line (line 3 on 2020 form) for parents to report CGs. Why then do you say CGs are not to be reported on parent's return? My specific interest is in UTMA CGs. Thanks

MarilynG

Level 15

Thanks for your reply. This is an UTMA account and no 1099 was issued. I do have the mutual fund statement for 2020 that shows the short term and long term capital gains for the year. The dependent did have earned income, but not enough to file a federal return. With the capital gains and earned income combined, there is enough to file a state return. Where does this go in Turbo Tax? Thanks

@jmallen72 Your son would not be able to prepare a State Return separate from your Federal Return.

He could set up his own account in TurboTax, prepare a Federal Return (and elect not to file it) and prepare a State Return at the same time for paper-filing.

Click this link for more info on Filing Separate Federal and State Returns.

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JohnW152

Level 15

@user314

You’re correct, your son’s scenario appears to be different from the original poster’s. He may not even need to file a return.

Please see the TurboTax Help article "Do I need to file my own taxes if I'm a dependent?" for more information.

cindysunny

Level 2

What to do if 1099-B is more than $1100 but lower than 2200?

Hal_Al

Level 15

The amount on form 1099-B does not determine whether you need to file. It's the capital gain on the proceeds that determine if you have to file. If that gain is more than $1100, your are required to file (even if less than $2200).

In a case where a long term capital gain is more than $1100, but less than $2200, no tax will be due (the LT gain is tax at 0%) but you are still required to file.