Re: Tax Implications for Custodial Account for Infant (Investment Firm)
- From: frank1492 <frank1492@xxxxxxxxxxx>
- Date: Thu, 29 Mar 2007 23:21:16 GMT
Thank you Phil. I will look into these other publications. I
really don't know whether this child will attend college as nobody
in her family has. My goal was simply to try to grow some money
for her and do better that a standard savings account. Every
time I think I have come up with a good idea, I get advice and
then start having reservations.
Frank
On Thu, 29 Mar 2007 15:21:27 GMT, "Phil Marti" <prm20871@xxxxxxxxxxx>
wrote:
"frank1492" <frank1492@xxxxxxxxxxx> wrote:
I am considering a custodial account for an infant. It will be set up
at Smith Barney. I am told I will receive a 1099 annually.
No, the infant will, assuming this is a standard UTMA account established
for the infant's benefit under the infant's SSN.
I assume I will have to file a tax return as custodian for the
baby. I'm interested in how complicated this will be as I am
already doing my own taxes which are fairly complex.
Could anyone give me an idea of the info that would be
involved in filing such a return? I am guessing it would be
fairly simple, but I want to check before I get involved.
It's much better for the parents to attend to this since it involves looking
at their income also. See the discussion in Chapter 31 of IRS Publication
17.
If the purpose of this is to establish a higher education fund, you might be
better served by a Qualified Tuition ("529") plan as described in IRS
Publication 970.
.
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