Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: TMFExRO Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121774  
Subject: Re: UTMA taxes vs parental safe harbor? Date: 3/28/2000 6:10 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<< 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.

Phil Marti
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

One Word: Plastics!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.