The minor children are responsible for the taxes on the investment interest as they are they owners of the UTMA. If the investment income for your children is the only income that they received in 2024 and it was less than $1,300 in investment income (interest, dividends, and capital gains) for each child, then you aren't required to report this income.
If they are under 19 (24 if a full-time student) you may choose to report this income on your tax return, but it’s optional. If the investment income is greater than $1,300, you must file a separate tax return for your child, and it cannot be included on your tax return.
If you decide to include your children’s investment income on your tax return, you must include Form 8814 – Parent’s Election to Report Child’s Interest and Dividends on your tax return.
- Launch TurboTax and select Wages and Income
- Scroll down to Less Common Income and select Child’s Income (Under Age 24)
- Answer the interview questions
For additional information, please review the TurboTax articles Tax Filing Requirements for Children and also Should I Include a Dependent's Income on My Tax Return? If you are considering including your child’s income on your tax return, please review the TurboTax article What is IRS Form 8615: Tax for Certain Children Who Have Unearned Income.
Review the TurboTax article Do I need to report my child's 1099-INT on my return? for additional information.
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