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Crisanne1
New Member

I am a custodian on my daughter's acct. Last year, she was 18 and I put the information on her tax return, not mine, is that correct?

 
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Hal_Al
Level 15

I am a custodian on my daughter's acct. Last year, she was 18 and I put the information on her tax return, not mine, is that correct?

It's somewhat optional. Assuming the account is under her Social security number, it's always OK to file the income on her return; even before she was 18.

If your dependent child is under age 19 (or under 24 if a full time student), and her only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.

But, it is usually best for her to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return. 

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Hal_Al
Level 15

I am a custodian on my daughter's acct. Last year, she was 18 and I put the information on her tax return, not mine, is that correct?

It's somewhat optional. Assuming the account is under her Social security number, it's always OK to file the income on her return; even before she was 18.

If your dependent child is under age 19 (or under 24 if a full time student), and her only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.

But, it is usually best for her to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return. 

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