1099-B Custodial Account

[skylinegtr2022]

I received 1099-B for my son custodial account but he is only 3 years old. After adding up all the gain and loss, he gained $17.00. I don't need to report this right? I just want to double check.  Thanks!

[ColeenD3]

It depends. It is not the amount of gain or loss that matters. All the IRS will take note of when they receive their copy of the 1099-B is the proceeds. They will have no way of knowing if it is a gain or loss without the return. If the proceeds exceed the amount below, then file.

Please see the filing requirements below.

Single dependents under age 65.

You must file a return if any of the following apply.

1. Your unearned income was more than $1,100.

2. Your earned income was more than $12,200.

3. Your gross income was more than the larger of— a. $1,100, or b. Your earned income (up to $11,850) plus $350.

[Radiochemistry]

We received a 1099-Div/Int/Misc form (below) from Fidelity for the custodial account @Fidelity for my now 15yr old

He needs to file his own return as he earned money last year while lifeguarding

Does this form/income go on his return or mine? What is being taxed, all dividends etc or just the Cap Gains Distro @amount shown below?

Thank you

Under the 1099-Div section it shows (not the actual numbers)

1a   Total ordinary dividends:     $123

1b   qualified dividends:              $120

5  Section 199A dividends         $10.50

under 1099-int it shows under

1   interest income               $2.52

then the Total Capital Gains Distributions Detail shows 

     Capital Gain Distributions Subject to Applicable Rate (m): $26.23

[ColeenD3]

Since he is filing his own return, this goes on his along with his earnings. It is all potentially taxed, assuming that there is sufficient income to tax.

[jerometl]

Hi,

I got the following 1099 from my brokerage for my 8-yr old daughter custodial account (this is the first year that we sold a stock in the account).  

Ordinary Dividend - $677.38

Proceeds - 16,649.93

Net gain = 1,775.84

I assume I would need to file a separate tax for her as I exceeded the threshold.  But when I enter everything in Turbo Tax as a new tax return, its says tax due is zero -- Does that seem correct ?  I was reading on other site and I thought only the first $1,000 is exempted from tax ?  Am I missing something ?

Thanks !

[ColeenD3]

Is it a Long Term Capital Gain?

[jerometl]

Hi Coleen3D,  Its actually a short term capital gain.  Thanks!