olga-santoro-we s
Level 3
03-12-2025
12:09 PM
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An individual opened a custodial (UGMA) for a grandchild. Are the parents responsible for paying the taxes or can the gran parents enter the interest and dividends on their personal tax return?
Thanks
olga-santoro-we s
Level 3
03-12-2025
04:52 PM
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Yes that's what I thought thank you. No reporting at all for the GP
George4Tacks
Level 15
03-12-2025
06:00 PM
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Grandparents made a gift and possibly should have filed a gift tax return at that time (depending on how much given.) Afterwards all income is income of the child, subject to Kiddie Tax (depending on age.)
Answers are easy. Questions are hard!