topic Grandparent with UTMA's for grandchildren in Get your taxes done using TurboTax

Grandparent with UTMA's for grandchildren

cbrokens — Mon, 09 Mar 2026 08:20:59 GMT

Do I file a form 8814 or form 8615 for my grandchildrens' UTMA's?

Re: Grandparent with UTMA's for grandchildren

AmyC — Fri, 11 Mar 2022 20:30:45 GMT

The person claiming the children on their return would be the ones to file either form. See Topic No. 553 Tax on a Child's Investment and Other Unearned Income (Kiddie Tax) which states:

The following two situations may affect the tax and reporting of the unearned income of certain children.

If your child's interest, dividends, and other unearned income total more than $2,200, it may be subject to a specific tax on the unearned income of certain children. See the Instructions for Form 8615, Tax for Certain Children Who Have Unearned Income for more information.
If your child's only income is interest and dividend income (including capital gain distributions) and totals less than $11,000, you may be able to elect to include that income on your return rather than file a return for your child. See Form 8814, Parents' Election To Report Child's Interest and Dividends.

For either situation above to apply, your child must be required to file a return. For filing requirement information, see Publication 929, Tax Rules for Children and Dependents and Do I Need to File a Tax Return?

Re: Grandparent with UTMA's for grandchildren

cbrokens — Sat, 12 Mar 2022 14:47:54 GMT

This is so confusing - I was told by my financial person that setting up an UTMA as a grandparent (and custodian), the grandchildrens' parents wouldn't be involved. Now it appears that they are the ones who have to either file the child's 1099 DIV in their own returns, or sign the 1040 if there is one filed for the child. So, I can't sign a 1040 for the grandchild if I am the custodian on the account?

Re: Grandparent with UTMA's for grandchildren

RaifH — Sat, 12 Mar 2022 15:13:59 GMT

Correct, UTMA income is not reported by the custodian but by the child. If the dividends reach the filing requirement, the child's legal guardian must sign the return, or they can elect to include the income on their return. Note that if the child's income from dividends and interest does not exceed $1,100 then no reporting is required.