Registered: Apr 2006
Local time: 10:57 PM
Location: St. Petersburg
I have two daughters. One who is a senior in high school and the other a 2nd year college student. They have part time jobs and I have them both as dependants on my tax return. I have a mutual fund taken out for them with me the custodian. I receive a 1099 which lists ordinary dividends and capital gains. Do I have to put this down as income on their 1040 tax form? The one daughter made $1,300 and the other made $5,000
When I add the dividends and captial gains I now have to pay back money to the IRS. If I don't report the dividends and gains they get small refunds.
Does it need to be reported? When I give them the accounts (I am the cusotodian) will this money be taxed again as income?