Claiming interest from UGMA for grandkid

Forum|Forum|1 year ago
March 10, 2025
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Is it possible to claim dividend interest and capital gains from a Uniform Gifts to Minors account for a grandkid on the grandparent's income tax return using TurboTax? If so, how?? The grandparent is listed as the custodian of the account, with the child's SSI number listed as the recipient. The taxable interest and gains are in excess of $1300, so the income will need to be reported. The child is claimed as a dependent on the parent's tax return, not the grandparents.

Best answer by Mike9241

No the grandparents do not report anything. Any 1099 would be issued under the child's SSN. If the child was under 19 (or under 24 if a full-time student) the kiddie tax rules apply. If the only income was interest, dividends, and capital gain dividends then a) the parents could report the income on their return using form 8814 or b) the child could file a return using form 8615. Option b may produce lower combined income taxes. If there were capital gains from the sale of assets the child must file a return and include form 8615.

you may want to see this concerning age of majority and trust termination. Once the trust terminates the child is free to use the trust assets as they see fit.

https://finaid.org/savings/ageofmajority/

Mike9241Answer

you may want to see this concerning age of majority and trust termination. Once the trust terminates the child is free to use the trust assets as they see fit.

https://finaid.org/savings/ageofmajority/