Question

UTMA

Forum|Forum|6 years ago
January 30, 2020
1 reply
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Our Grandson is 24 and in the military. We (his grandparents) started a UTMA when he was 8. He went into the service right after high school and has not used the UTMA. Since he is 24 does he have to pay taxes on the dividends earned yearly since he hasn't taken any of the money yet? And if so, will he have to do amended taxes for all of the previous years also?

N

NCPERSON1

yes, he has to pay the taxes on the dividends.... but what was his income in these past years? there may not be any tax due in any event.

How much in dividends are we talking about? (or did you mean interest). if these are truly dividends from stocks, the tax rate is no more than 15% and could be zero, depending on his income in these back years.