• is a tax return necessary

    From MZB@21:1/5 to All on Sun Feb 20 19:04:53 2022
    Mother has a toddler. She sets up a custodial account for her son. She
    is the custodian.
    Account earns: $2043 cap. Gains; $263 divds; $171 “other distributions.” The total is $2477.
    The account is under the child’s SS number.

    My question: Does she have to file a tax return for the child?

    Mel

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  • From ira smilovitz@21:1/5 to MZB on Sun Feb 20 19:29:01 2022
    On Sunday, February 20, 2022 at 7:05:43 PM UTC-5, MZB wrote:
    Mother has a toddler. She sets up a custodial account for her son. She
    is the custodian.
    Account earns: $2043 cap. Gains; $263 divds; $171 “other distributions.” The total is $2477.
    The account is under the child’s SS number.

    My question: Does she have to file a tax return for the child?

    Mel

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    Yes. If the only income were dividends and interest, the parent could choose to report the child's income on her return. But if there were capital gains, whether by sales or capital gain distributions, the child must file a return (assuming the minimum
    filing thresholds are met).

    Ira Smilovitz, EA
    Leonia, NJ

    --
    << ------------------------------------------------------- >>
    << The foregoing was not intended or written to be used, >>
    << nor can it used, for the purpose of avoiding penalties >>
    << that may be imposed upon the taxpayer. >>
    << >>
    << The Charter and the Guidelines for submitting posts >>
    << to this newsgroup as well as our anti-spamming policy >>
    << are at www.asktax.org. >>
    << Copyright (2011) - All rights reserved. >>
    << ------------------------------------------------------- >>

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