indyscott Posted April 11, 2008 Report Share Posted April 11, 2008 When Grandma/Grandpa open an investment account for the g'kid, and Gma/Gpa are listed as the account holder as "CSDN" and the second name on the account is g'kid "UTMA" am I supposed to be including this accounts int/div/brokeage sales on Gma and Gpa's 1040? I'm assuming so, because it's their taxpayer id on the 1099. I was just wondering, because how does it work when the kid is the owner of the account. I understand the theory of the kiddie tax, etc., but, not so much how it works in the real world. I'm almost afraid to ask this for fear that y'all will think, "omg, I didn't think that guy was THAT ignorant" :blush: Quote Link to comment Share on other sites More sharing options...
Booger Posted April 11, 2008 Report Share Posted April 11, 2008 UTMA spelled backwards is AMTU Booger Quote Link to comment Share on other sites More sharing options...
zeke Posted April 11, 2008 Report Share Posted April 11, 2008 "I'm almost afraid to ask this for fear that y'all will think, "omg, I didn't think that guy was THAT ignorant" One of my favorite words. Ingorant simply means uninformed - which almost all of us are! (Except Jainen of course.) Personally I consider the PITA factor along with the tax implications. A $23.45 1099-INT in G'mas SSN that belongs to G'son is probably going to be reported on G'mas return & that is all. If the 1099-INT is for $2,345.00 I will follow the established nominee distribution process. Quote Link to comment Share on other sites More sharing options...
schirallicpa Posted April 11, 2008 Report Share Posted April 11, 2008 Heres a quick overview on UTMA. Its the child's account under the custody of the parent/grandparent, until they reach age of majority, or some other age specified. Yes - parent takes tax for now. http://www.fairmark.com/custacct/cust101.htm Quote Link to comment Share on other sites More sharing options...
indyscott Posted April 11, 2008 Author Report Share Posted April 11, 2008 Ohh... Well, when I actually look at the TID on the 1099, is the g'kid's ssn.. I guess I s/ pay closer attention.. Quote Link to comment Share on other sites More sharing options...
indyscott Posted April 11, 2008 Author Report Share Posted April 11, 2008 Schiralli, thanks for that link. That's a good brief explanation. Quote Link to comment Share on other sites More sharing options...
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