I have a client who is the custodian of their sons UTMA account. He is 19 years of age and a full time student. I want to make sure that I am handling correctly as this is the first encounter that I have had with a UTMA account.
Their son has $4,000 of earned income, minimal dividend income, and a $23,000.00 net LTCG.
1) Am I correct in filing their son's tax return separate and claiming the unearned income on his return (it is his SS used)?
2) Should I set him up on quarterly payments in case he were to have more unearned income next year?
Any input would be greatly appreciated.
Their son has $4,000 of earned income, minimal dividend income, and a $23,000.00 net LTCG.
1) Am I correct in filing their son's tax return separate and claiming the unearned income on his return (it is his SS used)?
2) Should I set him up on quarterly payments in case he were to have more unearned income next year?
Any input would be greatly appreciated.