Question

How do I report my child's capital gains from her UTMA ( roughly $6,000) to my tax return for 2021 tax year?

Forum|Forum|4 years ago
April 7, 2022
2 replies
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I searched for "child income" and followed the instructions, but I didn't see anywhere to enter my child's capital gains (from her 1099-B). I only saw interests and capital gains distributions ( in 1099-DIV), which she doesn't have any. I'm preferred to include her capital gains in my tax form instead of filing for her separately. Last year, I was able to enter my kids' capital gains in my tax return, not sure what Turbo tax changed for this year that I couldn't find a way to enter it.
Any help would be great. Thank you.

TurboTax Premier Online

D

DavidD66

You don't report your child's capital gains on your tax return, even if it is from an UTMA for which you are the custodian. Those are your daughter's capital gains. Because your child has unearned income grater than $1.100 she will have to file a tax return. For more information see: Publication 929 (2021), Tax Rules for Children and Dependents

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B

Bsch4477

Employee

If you look at the form to include investment income in the parent’s return you will see that only interest, dividends and capital distributions are mentioned. Capital distributions are typically paid from a fund or stock holding as opposed to capital gains which are from a sale of equities. So capital gains from a sale of equities has to be reported on the child’s return and Kiddie tax will apply.

https://www.irs.gov/pub/irs-pdf/f8814.pdf

T

tram0001Author

Thank you for clarifying my puzzles. I thought the child's capital gains if less than $12,000 or so, can still filed with parent's return, not on form 8814 but a different form. It looks like I have to file her tax separately then.

Thank you for your responses.