Tuesday, March 5, 2013

Kiddy Tax Issues

Q.  My 16 year old daughter received a combined 1099 form showing 1099-Int, 1099-Div and 1099-B. Can I just report these on Form 8812 and save her the trouble of filing a separate return?

A.   In this instance, the answer is no, since a 1099-B was reported. If only Interest & Dividends are reported, then it is easier to use Form 8812 and pay any tax owed on the parent(s) return. When capital gains are reported (1099-B) and if they meet all the other requirements, they must file their own return. Sorry.

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