UTMA and Turbotax

[burnie1]

My 19 year old son has a UTMA with around $1000 in dividends and $3200 in interest. He also made $5000 from a job. My understanding is that the first $1300 of UTMA earnings are tax free, the next $1300 is taxed at his rate and beyond that, it is taxed at our rate. My question is where do I do this on Turbotax? When I put in his earned income on 1099-Div and 1099-Int, it doesn't ask if it is a UTMA account, so how does Turbotax know to do the exemption and different rates? 

What am I missing? 

[SusanY1]

You do not report this in the usual area for interest and dividends if you are reporting it on your own tax return.  If you wish to include his interest and dividends on your return, this will go under "Less Common Income", and then "Child's Income".  

Since he also has income from work, it may be simpler to report all of his income together on his own return since his income from work cannot be included on your tax return.

He will need information from your tax return in order for the tax rate to compute correctly on his return, but TurboTax will prompt for this based on his age and the amount of unearned income. 

[burnie1]

He is doing his own tax return. It did not prompt anything regarding a UTMA or tax rates when I put it in the 1099-DIV or 1099-INT sections. Will this prompt come later in the process?

Thanks so much for your prompt reply!

[SusanY1]

It may come in the review.  Be sure he has marked that he is claimed as a dependent on another return (in the My Info) section as well.  

If the prompts for parents filing status and income don't come up by the final review, reach back out and we can assist with further troubleshooting.