Question

My 16 year old was named the beneficiary of an annuity. I was named guardian of the estate and it started to receive the payments in 2022; the money is in a restricted account, per the probate court. How do I file this, on her own or with my taxes?

Forum|Forum|3 years ago
March 9, 2023
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It depends on how much she received. Since this is unearned income she may be subject to the kiddie tax rule.

If she received more than $1,150, you will need to report it on her own return. You will include form 8615 with her return. This form will ask for your income as she will be taxed at your rate instead of her rate. Because this was an annuity and not just interest and dividends, you cannot include it on your return. She will need to file her own return that will include her annuity payments and any other income she earned or received.

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