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I have a 13 year old and a 10 year old. I opened an UGMA account for each of them ... As my 13 year old's account approaching 6 figure, ... Any advice?

Raise them well. At 18 (21 in a couple of states) the money will be theirs to do with as they please. A 6 figure sum is a lot of money to drop on an 18 year old.


PS - I'd immediately start reporting the income from this money on their own return. The only benefit of reporting it on your own return is a minor bit of simplicity. If you are subject to any AGI-based phase outs, you are increasing your family's taxes by including their income in your AGI.

And because you're asking the question, I'd hazard a guess that you are not reporting their income correctly on your return - using form 8814 - and taking advantage of their standard deduction and a little bit of the 10% tax bracket. If you've made that mistake and are in the 28% bracket, you've probably overpaid your taxes by a few hundred dollars each year. (More if your in a higher tax bracket, less if you're in the 15% bracket.)

I don't think you can reverse your election to report your children's income on your return, but you could amend your returns for the last three years to correct your calculation of your tax. That might get you $1000 or more back from the IRS. Certainly enough to be worth looking into.
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