Sale of UTMA

[jqn39344]

When my dependent daughter who is a full time student turned 21 we sold the investments in her UTMA to help pay tuition.  The total gains were $2160.22.  Over the course of the year she earned $1402.90 working.  Do I report the gains from the 529 on my taxes (I was the custodian)?  I assume that she does not need to file a return with such low income? 

[BrittanyS]

Yes, as the custodian, you will claim the gains on your return.  Since her income was only $1,402.90, she is not required to file a return.  If she had taxes withheld, she can file a return an get those withholdings back.  Just make sure if she does file a return, she makes that she is being claimed as a dependent on someone else's return.