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Uniform Gifts to Minors Act/Uniform Transfers to Minors Act (UGMA/UTMA)
UGMA/UTMAs are custodial accounts that let parents (and others) make an irrevocable gift to a minor that can be used for college or any other purpose. For federal tax purposes, investment earnings are generally taxed at the minor’s tax rate, which is usually lower than a parent’s rate. I think for 2020 the first $1,100 of investment income is exempt from federal income tax under the child's standard deduction, the next $1,100 is taxed at the child's rate, and any amount above $2,200 is taxed at the parents' rate.

My Question:

If the subject custodial account is created by a relative (aunt, uncle, etc) is the tax reporting requirement borne by the donor (aunt, uncle) or does it remain with the parents.

TIA
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