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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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I recently opened 4 accounts under the Uniform Gift to

Customer Question

I recently opened 4 accounts under the Uniform Gift to Minors Act. The ages of the children are 9,7,3 and 3. My questions are:
1. How much dividend or capital gains must the account generate to generate filing with the IRS?
2. If a filing is generated, who does the filing and pays the tax?
3. As the custodian of the accounts could I file for the child and pay the tax?
Submitted: 9 months ago.
Category: Tax
Expert:  Lev replied 9 months ago.

1. How much dividend or capital gains must the account generate to generate filing with the IRS?

I assume that minors who legally own these accounts are dependents of their parent's tax returns.

Correspondingly - we need to consider filing requirements for dependents.

I also assume that will be ONLY income for children and that will be only unearned income. Unearned income includes income such as interest, dividends, and capital gains.

For 2015 - dependents must file a return if unearned income was more than $1,050.

Expert:  Lev replied 9 months ago.

2. If a filing is generated, who does the filing and pays the tax?

If a dependent child must file an income tax return but can't file due to age or any other reason, a parent, guardian, or other legally responsible person must file it for the child. If the child can't sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child.”
3. As the custodian of the accounts could I file for the child and pay the tax?

Generally - that is a responsibility of parents.
the custodian of the accounts may prepare the tax return for the child If he/she is a parent, guardian, or other legally responsible person.

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