Who reports a 1099-DIV on a UTMA under $1000

[eli104]

I know this has been asked, but I am looking for clarity:

• I have a UTMA account for my 20 year old daughter (full-time college student)... and we list her as a Dependent on our taxes.
• The UTMA generated a 1099-DIV of a little over $100... (far less than $1,000). BUT, it also shows HER Social Security number on the form and the account!
• Since she also works part-time, she must file to get a refund on her withheld taxes.
• So the question is:
  • Does SHE report the 1099-DIV income on her taxes, or do I report it on my own taxes?
  • OR... does it not need to be reported since it's a low amount and her overall earnings are under $10,000 for the year?

[Hal_Al · Accepted solution]

Q. Does SHE report the 1099-DIV income on her taxes, or do I report it on my own taxes or does it not need to be reported since it's a low amount?

A. She reports it on her tax return.

If that was her only income, it would not be enough to have to report (less than $1100 unearned income).  But, since she must file to get a refund on her withheld taxes, she must include ALL her income on her tax return.

[AnnetteB6]

Since she is filing her own return anyway, she should include the dividend income on her return.  

When you do file a tax return, you are required to report your worldwide income.  Therefore, the dividends do need to be reported.  

Taking a look at them on their own and combined with her part-time W-2 income, the filing requirement may not be met except for filing for a refund of taxes withheld.

[Mike9241]

by the way that UTMA a/c may need to be retitled. most states have laws dealing with UTMA a/c's once the child reached their majority (age) in the state.   once that happens it's her money to do with as she pleases. the trustee/administrator no longer has authority to control what is done with the assets and can even be sued for mismanagement.

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