tax on an inherited IRA for a minor child
My son inherited a traditional ira from my grandfather. We took the distribution (~15,000). How do I pay taxes? Can I just add it to my tax return, or do I have to file one for him separately? Thanks!
My son inherited a traditional ira from my grandfather. We took the distribution (~15,000). How do I pay taxes? Can I just add it to my tax return, or do I have to file one for him separately? Thanks!
Permalink Submitted by Alan - IRA critic on Sat, 2014-04-05 21:00
15,000 is too much to report on your return, so child needs to file. Further, this is considered investment income of the child, so the kiddie tax will apply ( at least part of income taxed at your rate).