A 1099 will be issued to the kid's SS# and the parent is responsible for filing the 1040 and any other forms needed.I agree!
You can prepare but cannot always predict how responsible an 18 year old is. So of course it's their money but it would be nice to say at some other age (say 25) "Hey, guess what you have X amount of money you can use to place a down payment or whatever" as opposed to an 18 year old saying, well, I will be traveling Europe for the year on this money and blow through it all.
I think UGMA is the way to go, so will do! I am not sure I still understand the tax implications. When it does grow, am I responsible for the taxes while they are still kids or do they get a 1099, which then I have to file for them? Thank you.
I complete my Grand's 1040s and forward them to my Daughter.
Statistics: Posted by RetiredAL — Wed Jan 01, 2025 11:30 am