TD Ameritrade Custodial Account

[MGC94]

Taxpayer name as cust for taxpayers dependent

Recipient's TIN is the taxpayer dependents.

Dependents DOB 03/26/2010 he is 12.

Will this go on the taxpayers account?

dividends 105.84

qualified dividends 105.84

1099-B

Proceeds $107,262.26

Cost Basis $106,202.74 

Wash $594.09

[ljr]

No to parents return. Once the dependent has sales (1099-B) they have to file their own tax return. Only interest and dividends can be elected to be put on the parents return. 

[MGC94]

even though he is 12? and doesn't work? 

[MGC94]

even though he is 12? and doesn't work? 

[sjrcpa]

Yes. Kid has to file his own return. And subject to tax at parents' rate (Kiddie Tax).

I've had infants who need to file-trust babies.

[TaxGuyBill]

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@MGC94 wrote:

even though he is 12? and doesn't work? 

---

Age and working are not part of the requirements of who needs to file a tax return.

[ljr]

take a look at filing requirements. Infants and children file if they make a certain amount of money or if it comes from certain sources. Child actors/models/trust fund babies etc. all might have to file. Maybe he collects royalties off the oil well his grandpa got him. LOL. 

[MGC94]

So it can't just go on the parents return? 

[IRonMaN]

You had how many "no" answers.  How many will it take to believe the advice you were given?

[abctax55]

So it can't just go on the parents return? 

To para-phrase someone - read the instructions if you doubt the advice you've been given already.

Only capital gain DISTRIBUTIONS can go on the parent's return.

Your client has stock sales/transactions.

[ljr]

Again, NO it cannot go on the parent return. Do you want to have to respond to the CP2000 notice that gets sent to the child? Then have to do the child's return because the notice may not have the correct cost basis and then you will have to amend the parents return as well to remove it. 

[MGC94]

 What about form 8814 on the parents return? 

putting the dividends on and the capital gains? 

[IRonMaN]

NO

NO

NO

NO

NO

NO

NO

And for good measure - NO.

[sjrcpa]

NO.

Once the child has to file a return, ALL of their income gets reported on their return.

And the child's return will probably need Form 8615, too.

[MGC94]

Okay. I called a tax office and I asked them about $105 ordinary dividends and $105 qualified dividends and a $1,653 capital gain on 1099-B and they said "file 8814 on the parents return" It was $61 when I tried the 8814 on the parents taken away from the return. I know you are all saying no, but I thought it was strange that I would call a preparer and that was their answer 

The 8615 did not populate when I put the info on the kids return -$15 fed -$6 state 

[IRonMaN]

Personally, I would quit calling that tax office if I was you.

[abctax55]

@MGC94 

Hope you got that stellar advice in writing, so you can

1) show it to your client when they get IRS notices

2) show it to your E & O insurance carrier when you ask them to cover the penalties.

And, BTW - those of us who have "tried" to assist you DO run tax offices.  Many of us for decades....

[Skylane]

Wow

[abctax55]

Bruce... you talkin' to 'me' 😉

[MGC94]

I did not get it in writing and I don't doubt you guys own offices. Is there anything wrong with reading/ researching/ a 2nd opinion. 

I got it guys. The 12 year old will file. 

What do I do that that a 8615 did not populate and I didn't see anything about a Kiddie Tax or anything about his parents return, just that he is claimed as a dependent 

[abctax55]

You aren't *researching*  as you aren't reading the instructions.... the ones you've been provided links to that specifically state that all that can go on the parent's return are interest/dividends/capital gain distributions.  NOT info from a F 1099-B.

A "SECOND" opinion when at least four or five on this forum have told you that you can't do it the way you 'want' to ?  

I don't use PS so I can't tell you what you have done wrong with the data entry.

And I'm now outta here, and your posts.  Good luck with filing season.

[sjrcpa]

Read the 8615 Instructions - and look at the top of the form.

It may not be needed for this particular child's return.