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Subject:  Re: Why Not Take Gains in UTMA? Date:  2/7/2013  10:02 PM
Author:  TMFPMarti Number:  117678 of 124773

I recently discovered that, for 2012, she can have up to $1900 in "unearned" income without paying taxes

Unlearn that. You're confusing two things: filing requirement (which implies having to pay tax) and the threshold for "kiddie" tax rates. For 2012 if a dependent has nothing but unearned income the standard deduction is $950. Beyond that tax is due.

See the 1040 instructions.

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