We claim our daughter in collage. She does not have a w-2 but has a 1099-B from money out of her account that was transferred from an UTMA. Does she have to file a retur

[JustinC · Accepted solution]

Yes she will need to file.

Miscellaneous income like this does not always have taxes held out of them automatically. She needs to report the income and find out if she owes any amount to the IRS. If federal taxes were withheld  from this income, she may be exempt from filing. The most important thing is to check federal income tax withheld in box 4 of her form. That is the most important part. I would strongly recommend her filing just to be sure. The income is considered taxable, if the right amount of federal taxes were withheld then she hasn't made enough to meet the minimum amount to be required to file.

However if there have not been enough federal taxes withheld she most certainly needs to pay the difference.

https://www.irs.gov/pub/irs-pdf/p501.pdf