Do children have to report taxes if an investment is in their name, if so at what age,or time.?

2 ⤊

Do children have to report taxes if an investment is in their name, if so at what age,or time.?

2007-06-30 08:29:17 · 2 answers · asked by lena 2 in Business & Finance ➔ Taxes ➔ Other - Taxes

2 answers

Yes at any age, they have to pay at their own low rate for the first bit then at the parents rate. People were putting investments in the babies name to avoid taxes so the IRS put a stop to that I think it was the 1986 changes.

2007-06-30 08:34:02 · answer #1 · answered by shipwreck 7 · 2⤊ 0⤋

Yes, they do if the investment earns a profit and they take the cash out. If the investment profit is not taken out they have no reporting to do. If the investment was given to them, there should be a report in the form of a gift tax.

Fred

2007-06-30 15:33:42 · answer #2 · answered by Anonymous · 0⤊ 5⤋