topic I cashed out mutual funds for my daughter, under the gift to minors act, for college and claimed the amount of my taxes. Now IRS asking my daughter to pay. in Get your taxes done using TurboTax

I cashed out mutual funds for my daughter, under the gift to minors act, for college and claimed the amount of my taxes. Now IRS asking my daughter to pay.

ab7547hd — Thu, 02 Jan 2020 23:01:32 GMT

Re: I cashed out mutual funds for my daughter, under the gift to minors act, for college and claimed the amount of my taxes. Now IRS asking my daughter to pay.

rjs — Thu, 02 Jan 2020 23:16:05 GMT

A UGMA (Uniform Gifts to Minors) account belongs to the minor, not the custodian or the parent. The income from the account is your daughter's income, not yours, and has to be reported on her tax return. You should amend your tax return to remove your daughter's income.

The Social Security number on the account is your daughter's Social Security number, and the form 1099-B that you received for the sale of the mutual funds has her Social Security number on it. It's her money, and the income from it is her income.

Depending on what state you are in, and when the account was opened, it might be designated as UTMA, Uniform Transfers to Minors, rather than UGMA. But the rules are the same.

Re: I cashed out mutual funds for my daughter, under the gift to minors act, for college and claimed the amount of my taxes. Now IRS asking my daughter to pay.

Anonymous — Fri, 03 Jan 2020 00:58:03 GMT

a federal return and possibly a state return needs to be filed for your daughter. the good news is that with her income removed from your return, you should get a refund. you may have to file and amended return to get it.