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

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sjrcpa
Level 15

Goes on parents' or kid's return. Kiddie tax may apply.


The more I know the more I don’t know.

Yes that's what I thought thank you.  No reporting at all for the GP

George4Tacks
Level 15

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!