I have 3 UGMA accounts, 1 for each of my children that I clame as a dependent on my TAX's. The all have a small amount of capital gaines (less then $500).

Do i need to report this on my TAXES or do they need to do their own? my understanding is that if under $1100 they are not required to report it?

posted

No - Don't include the earnings from the UGMA accounts on your tax return. It would go on the child's return, if they are required to file. Your children do not have to file a tax return unless their unearned income (interest, dividends, capital gains, etc.) exceeds $1,100.