How Are UTMAs Taxed? (Here's the Answer)

How Are UTMAs Taxed? (Here's the Answer)

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[justmemories]

1:55 Age 18 pushed to age 24 if child is full time student
2:10 First $1, 100 of earned income from dividends or capital gains is NOT taxes
2:45 From $1100-2200 is taxed at 10%
Over $2200 is taxed at parents tax rate

[cwshifflett]

Woot woot this was my question that I got the answer for! You guys rock!

[TrickyBoa]

In all do respect, what’s the point of setting up an investment account for your child if you’re not going to be semi aggressive with it? I would much rather put it in an overall market fund or snp 500 than a target retirement. You might as well put the money in a high yield savings account then.

[comicsandcaviar]

I bought dividend stocks for my child’s UTMA. Would the dividend payouts be considered earned income and taxed?

[CollectingBS]

Thanks! We use these for the kids’ cash gifts, so it’s already theirs and not dependent on the FOO :)

[Brandon-ibfm]

If I add money into the account throughout the year, does the money i invest count towards their unearned income? Or does only the earnings on my contributuon count towards income?

[strlla]

Do I still have file taxes for dividend less $1, 100, even if it tax free. O just don't include it?

[ryann]

Started UTMA for my kids and put $34k in each of them in this recent market bottom. Wonder how it'll grow over 60 years for their retirement

[tuffstuffmcgruff]

Don't you want to gains-harvest under that $1200 annual bracket to increase your cost basis?

[kent]

Thank You.
I have an UTMA for my grand daughter with Computershare.
I have purchased individual stocks that are underperforming and I would like to sell those positions and buy a position that may be a better fit.
Computershare says when I sell these shares the funds will be swept into my checking account.
My question is will I be responsible for capital gains or is there a threshold as in dividends/income?
Thanks

[vvak]

How do you do UTMA gains harvesting for unrealized gains above $2200.

[MunkFist]

If I use my 1 year old child's image on my business website as a marketing tool, can I pay that 1 year old a salary or annual usage fee that the child can claim as earned income to start a Roth?

[ivanfromtexas]

Hypothetically speaking, if I deposit $100 to an UTMA and it grows to a market value of $2, 000, do I have to pay taxes on that capital gain as it grows? Say t generated $50 in dividends over the same period, is that the only part that is taxed as earnings? Please help me understand. Thank you.

[Shahraeuhh]

I have a question my daughter (8) makes YouTube & tiktok videos she wants to launch products which would be considered earned income at that point if she is making 10k a year (hypothetically) can I put in 6k to her roth & 4K to the utma?

[matthewharrigan]

Taxed at parents rate meaning ordinary or capital gain rate?

[ericjuli]

If it’s under $1100 do they need to file??