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Financial Planning / Tax Strategies
|Subject: How should kids report small DRiP dividends ?||Date: 1/3/1999 8:45 PM|
|Author: gsr||Number: 7918 of 125208|
My wife and I recently started DRiP plans (INTC and JNJ) for our Niece's two kids.
These are custodial accounts with one of the parents as custodians for each child, with the child's SSN used to report to the IRS.
The Dividends this year will probably be under $5 for each account.
I am trying to get knowledgable about what (if any?) filings to the IRS need to be done. To be safe, I am going to assume that they will need to submit a 1040ez to declare the dividend income, but will owe no taxes due to personal exemptions.
Information from anyone who has been through this before will be appreciated.
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