[USER]

I opened 2 Custodial Accounts for my kids last year. How do I file taxes? Do I file under my taxes or need to do a seperste tax return for my kids? They are 10 & 14.

I want to make sure I’m reporting any income correctly. Are there specific IRS rules or forms I should be aware of?

At what point does the income require filing a separate tax return for my child?

Any guidance or personal experiences would be greatly appreciated!

Thanks.

[Amy]

I did the same thing. My CPA said that because it was technically under her Social Security number, and she had no earned income then she didn’t need to file and I didn’t need to file it under my taxes

[Zack]

Not a tax person but from my understanding you can do either. However, until the accounts actually throw off enough gains to meet income thresholds to require filing you don’t have to do anything.

Effectively anything over $2600 is the parents responsibility last I checked.

[Sage]

You don’t have to file taxes for a custodial account, as they are bought with after tax dollars.

Simply opening an account and buying assets is not a taxable event.

Taxes may be due in the child’s name if those assets are sold at a profit, or dividends are received but their investment income would have to be above 10k a year I think to require them to file.

[Author]

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