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URL:  http://boards.fool.com/ltlt-my-kids-have-utma-accounts-which-12290617.aspx

Subject:  Re: UTMA taxes vs parental safe harbor? Date:  3/28/2000  6:10 AM
Author:  TMFExRO Number:  32759 of 126333

<< My kids have UTMA accounts which collectively generate just enough dividends to trigger the kiddie tax. Since neither one has found a job yet (some lame excuse about learning to read & write first), neither has W-2 income to manipulate withholding to avoid estimated taxes. >>

Kids today! What a lame excuse for not having a job. Why, in my day....

<< What, if any, is the relationship between my safe harbor WRT estimated taxes & their tax liability? Can the little tricycle motors piggyback onto Dad's W-2 safe harbor or am I going to have to find a Dickensian sweatshop for them to work in? Does anybody have Kathie Lee's number?

My understanding is that the threshold for the penalty to kick in is taxes >$1K. Is that a separate grand for each kid, plus me & the missus (MFJ) or what? >>

Since you're filing returns for them, they have their own ES requirements. As long as their individual tax is under $1,000, you don't need to worry about ES payments. When you get past that, it looks like you're stuck with ES payments until you can put them to work.

TMF ExRO
Phil Marti

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