Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 4
posted Mar 25, 2021 11:29:00 AM

Utma account child is now 25

My daughter has an Utma account**  but is now working full time and 25 years old

** "UNDER THE NC UNIF TRSF TO MINORS ACT"

Assuming she reports the qualified / ordinary dividends <$37.66> and capital gains distributions <$106.01> 

.. what form is this reported on ?

 

Many thanks,

 

Tom

 

we have procrastinated on transferring it to her name, but will def do it this year

 

0 3 903
1 Best answer
Level 15
Mar 25, 2021 11:51:52 AM

If you are the custodian, you should have received a Form 1099-DIV for the dividends and capital gain distributions. Your daughter should enter the 1099-DIV in TurboTax the same as if it were her own account, and not a UTMA account. It doesn't make any difference that it's a UTMA account. To enter the 1099-DIV, type 1099-div in the Search box, then click the link that says "Jump to 1099-div." TurboTax will put the income on the correct forms. Exactly where it's reported on the tax return depends on what other income she has.

 

3 Replies
Level 15
Mar 25, 2021 11:47:16 AM

technically a UTMA automatically terminates when the child reached his/her majority. usually 21. at that age or maybe even 18 (depending on state law) the UTMA a/c should have been closed and the assets transferred to an a/c solely in her name.   

enter that info in her return on form1099-div.

 

Level 15
Mar 25, 2021 11:51:52 AM

If you are the custodian, you should have received a Form 1099-DIV for the dividends and capital gain distributions. Your daughter should enter the 1099-DIV in TurboTax the same as if it were her own account, and not a UTMA account. It doesn't make any difference that it's a UTMA account. To enter the 1099-DIV, type 1099-div in the Search box, then click the link that says "Jump to 1099-div." TurboTax will put the income on the correct forms. Exactly where it's reported on the tax return depends on what other income she has.

 

Level 4
Mar 25, 2021 11:57:56 AM

Thanks to all - have a great day !  Tom