The Money Mustache Community

Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Gin1984 on June 08, 2014, 10:56:15 AM

Title: Custodial Accounts and taxes
Post by: Gin1984 on June 08, 2014, 10:56:15 AM

This year I opened a custodial account with Capital one because they offered to add $100 if I did.  I did screw up, you had to set up an automatic deposit AND buy a fund.  I forgot to delete the automatic deposit so I have $198 in the fund (100-4 from my deposit and $100 from them, plus the gains) and $200 in cash. I assume I have to do a tax return for my daughter because of the $100.  Is that correct?  And does that mean I have to file again every year until I close it out, even if she made nothing?

Title: Re: Custodial Accounts and taxes
Post by: MDM on June 08, 2014, 05:57:58 PM

If that is her only income, then "no".  Below certain amounts even the IRS is reasonable.

See http://www.forbes.com/sites/kellyphillipserb/2014/01/26/do-you-need-to-file-a-tax-return-in-2014/ and similar articles.