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Yes, I know it's way past time to file tax returns. However, I made a decision about my children's tax returns this year and I keep thinking maybe I made the wrong decision. Situation is this:

One child has a irrevocable trust for college. We have filed a tax return each year using the trust EIN no matter what the income of the trust is so that all money will be tax free when he start college. This year the trust had a loss due to moving funds from one mutual fund to another at the same company. The trust had income (capital gains, dividends) but the sale loss was greater than the income. We didn't file a tax return.

2nd child has money in UGMA account. Same situation, we moved some money around and triggered a loss on the sale that exceeded capital gains and dividends. In past years, we have added her income to our return since she's under age 14 and paid her taxes that way. Couldn't do it this year since we need to do the schedule showing sale of assests (schedule D? can't remember). Again, we didn't file a return for her.

Should we have filed for each child even tho income was ZERO just to show the income - loss = net loss for each child? Any point in filing those returns now? Should I just keep copies of what I would have filed in case it ever comes up in the future??
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