How can I download kid's 1099s onto parent's tax return so it goes into the kiddie tax portion?

[williasp]

I am working on parent's joint tax return.  I downloaded all their 1099's directly to TT from their brokerage.  The downloaded 1099's included those for the two kids UTMA accounts.  However, these kid's 1099's show up as part of the parent's incomes and there is no way to change that to the kids.  So I deleted these two UTMA 1099's.

While I haven't gotten there yet, I am wondering when I get to the kiddie tax portion of the return, will I be able to download the kid's 1099's into that section.  I understand I can probably manually enter the information this year, but in future years, if the 1099 includes stock sales, it will be a real pain trying to enter the info manually.

Of course, I understand that an alternative would be for each kid to file his/her own tax return.  Although, even there, I'm not sure how the download process would work because obviously the kids do not have a user name and password for the brokerage account.

[CatinaT1]

I would enter them manually.

[williasp]

I try to avoid manual entries as much as possible to reduce the possibility of errors.  I gather it will be necessary for the kids to file their own tax returns once their investment income exceeds $1300.

[Mike9241 · Accepted solution]

There doesn't appear to be a way to import the kids' 1099s  into the kiddie tax form.

Children subject to kiddie tax rules 

1) The kiddie tax always applies if they are under 18

2) age 18 (on 12/31 of that year) the kiddie tax rules apply if the kid's earned income is less than or equal to 50% of their support

3) 19 to 23 if the child is a full-time student and earned income is  less than or equal to 50% of their support  

4) older than 23 never applies

when can the form 8814 be used (parent reporting)

Use this form if you elect to report your child’s income on your return.
If you do, your child will not have to file a return. You can make this
election if your child meets all of the following conditions.
• The child was under age 19 (or under age 24 if a full-time
student) at the end of 2024. Full-time student is defined below.
• The child’s only income was from interest and dividends,
including capital gain distributions and Alaska Permanent Fund dividends. A sale of their securities disqualifies the parents from using this form. File 8615 instead with the child's return
• The child’s gross income for 2024 was less than $13,000.
• The child is required to file a 2024 return.
• The child does not file a joint return for 2024.
• There were no estimated tax payments for the child for 2024
(including any overpayment of tax from his or her 2023 return
applied to 2024 estimated tax).
• There was no federal income tax withheld from the child’s
income.

Advantages of filing 8814

1) no separate return for the child

2) Parents' investment income is increased, which may allow a greater investment interest deduction 

3) The parents' AGI is increased, which may allow a greater deduction for charitable contributions

Disadvantages

`1) lost deductions like child's early withdrawal penalty 

2) Possibly a higher Net Investment Income tax for the parents. The child income is included 

3) greater tax. The child's first $1300 of taxable income is taxed at 10%. If this includes qualified dividends or long-term capital gains the parents may end up pay an additional $130  ( however, this need s to be compared to the cost of preparing separate returns for the kids)