Charles Schwab Custodial Account

[Lord_Tasho]

Hi

My mom has Charles Schwab custodial accounts with my two kids who are under 18.  Who pays the taxes on this?  FYI, the SS is under each child.

Turbo Tax does not include my kids names in the drop down menu.  Would I have to file separate returns for each child?

[SabrinaD2]

Since your children's custodial accounts at Charles Schwab are under their Social Security Numbers (SSNs), how you report your child's investment income depends on how much they've made.

• A person is considered your child if they're a dependent under the age of 19 (24 if a full-time student) as of December 31, 2024.
  • If your child's only income is unearned and doesn't exceed $1,300, it doesn't need to be reported.
  • If your child's unearned income is between $1,300 and $14,600, they may need to file their own return, but If your child’s investment income consists only of interest and dividends, you can use IRS Form 8814 to include it on your own return and combine it with your own income
  • If your child's unearned income is $14,600 or more, they need to file their own return.

Follow the steps to figure out how to best report this income.

TurboTax Online

1. Open or continue your return. Be sure you are logged in for link to work:
2. Click on child income.
3. Follow the onscreen instructions to determine if the income can be included on your return or if your child needs to file their own return.

For more detailed guidance, you can refer to this TurboTax help article