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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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Dear U.S.Tax Specialist, Last year my minor daughter

Customer Question

Dear U.S.Tax Specialist, Last year my minor daughter received a $75,000 gift from her foreign grandparents. For convenience, the funds were held in foreign currency at a foreign bank account under my name. Fbars will be filed so no problem there. The income
earned on the account last year was $3,300. So should I file a U.S. Tax return for my daughter to disclose this income and pay the tax at the kiddie rate, or should I disclose all or part of the interest income in my U.S. tax return and pay tax at my tax rate
which is about 25%?
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.

We need to be clear that is your daughter's funds and are simply held in trust by you.
These are NOT your money - and not your income.
If these assumptions are correct - you are receiving that income as a nominee - and it should be reported on your daughter's tax return.
I would suggest to report based on the factual ownership - on your daughter's tax return.

Expert:  Lev replied 2 months ago.

If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all Social Security / Tax related issues.