Question
What to do if children received 1099-B
I sold/exchanged some of my kids mutual funds in 2018 which resulted in long term capital gain. They received a 1099B form. When working on my return on TurboTax Deluxe, the software offered to help me decide if a return was needed for my kids unearned income. I found it to be very misleading, as it asked for 1099-INT and 1099- DIV forms, and as the combined total of these was pretty low, it suggested that the kids did not need to report the interest and dividends. It failed to mention that any 1099-B means a mandatory separate tax return, even if no tax was due!!
