filing a tax return for children ROTH and 529 distribution

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doneat53
Posts: 123
Joined: Tue Jul 04, 2017 1:23 pm

filing a tax return for children ROTH and 529 distribution

Post by doneat53 »

So with two kids in college we have taken withdrawals from their 529's for the first time and they are receiving 1099-Q's. In addition, I started ROTH's for both kids and contributed for the 2017 tax year. That said neither earned enough to owe taxes for the year. Can someone tell me if I still need to file a tax return for them (or better yet teach them to file one) to "prove to the IRS that they don't owe taxes" or can I just not file because it is clear they don't owe taxes?

Thanks
livesoft
Posts: 86075
Joined: Thu Mar 01, 2007 7:00 pm

Re: filing a tax return for children ROTH and 529 distribution

Post by livesoft »

They can just not file. However, since their tax returns will be simple make them file their own tax returns in order for them to be good citizens and start learning about the process.

Who is the owner of the 529 plan(s)?

They can start by searching for "Who must file?" at irs.gov. Perhaps what I wrote above is wrong. See Chart B.
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LifeIsGood
Posts: 1243
Joined: Mon Feb 11, 2008 7:43 pm
Location: Atlanta, GA

Re: filing a tax return for children ROTH and 529 distribution

Post by LifeIsGood »

One other benefit to filing a tax return (and especially by doing it early in the tax season) is that it eliminates the possibility of someone filing a fraudulent tax return in their name.
Topic Author
doneat53
Posts: 123
Joined: Tue Jul 04, 2017 1:23 pm

Re: filing a tax return for children ROTH and 529 distribution

Post by doneat53 »

OP: Both suggestions good, thanks!
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