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Level 2
posted Mar 24, 2024 8:26:41 AM

UTMA accounts

I am the custodian for 3 UTMA accts for my grandchildren, I received 1099-Div   for each. I have read conflicting articles, I am confused, do i need to report this on my tax return. I imported with turbo tax, each account had dividends of 14.99 and capital gains of 33.77, small amounts.   I do not claim them as dependents

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1 Best answer
Level 15
Mar 24, 2024 10:00:12 AM

Each 1099-DIV should have the child's Social Security number on it. You do not report the child's income on your tax return. You should give the 1099-DIV forms to the children's parents. If the dividends that you mentioned are the child's only income, the child does not have to file a tax return. But if they have other income or file a tax return for any reason, the child or the parents will need the 1099-DIV. As the children get older it will become important that they and their parents know about the UTMA accounts and get the 1099 forms.

 

2 Replies
Level 15
Mar 24, 2024 10:00:12 AM

Each 1099-DIV should have the child's Social Security number on it. You do not report the child's income on your tax return. You should give the 1099-DIV forms to the children's parents. If the dividends that you mentioned are the child's only income, the child does not have to file a tax return. But if they have other income or file a tax return for any reason, the child or the parents will need the 1099-DIV. As the children get older it will become important that they and their parents know about the UTMA accounts and get the 1099 forms.

 

Level 2
Mar 24, 2024 10:07:22 AM

thank you so much!!