Question

Trading account

Forum|Forum|6 years ago
January 26, 2020
1 reply
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Hi,

a) I had recently opened trading account for my daughter who is 20 years old. Can I file her Tax statement (profit/loss) as part of my tax filing or do I need to report her filing separately?

b) Also, I was planning to open Roth IRA for my son who is 17 years old. Do I need to report under my tax filing or should this be filed separately?

Thanks in advance.

Regards

Not A Product Question

A

Anonymous

if you put more than $15,000 in the account and it's register under her name and social security number you have made a gift that requires you to file a gift tax return. it unlikely there will be any gift tax due. a return would have to be filed for her

assuming you qualify to claim her as a dependent here are the filing requirements

she must file a return if any of the following apply.
• her unearned income was over $1,100. (dividends, interest, etc)
• her earned income was over $12,200. (salary + and net self employment income)
• Your gross income was more than the larger of—
• $1,100, or
• Your earned income (up to $11,850) plus $350.

Roth IRA's contributions not in excess of maximum are not reported on tax returns. however, you need to keep track of the contributions for him.