What tax form(s) do I need to enter a child's inheratnce from a Traditional IRA?

[lawre51]

I need to know what federal and state forms to send in to both taxing agencies.  My granddaughter inherited the money from her grandmothers traditional IRA.  Edward Jones sent her the amount in one check.

[dmertz · Accepted solution]

This is unearned income of the child.  If the child's total unearned income is more than $1050, you must report this on the child's own tax return.  Otherwise, it is not reportable and no income tax return for the child is needed if there is no other reason that the child must file a tax return.  Under no circumstances is this reportable on your own tax return.