I have a very small UTMA account for my son. Dividend is less than $100.00. When he didn’t have to file tax return, I didn’t have to report this money per IRS (less than $2200). He turned 18 last year and will file tax return this year. Vanguard still post 1099 under my account but uses my son’s SSN.
Now he will file tax return. Will he needs to report this?
Yes, it’s his income. Depending on the state, it may be time to end the custodianship and turn the assets over to him. (In some states, this happens at age 21.) Vanguard should be able to provide guidance.