<p>D has withdrawn money from her UTMA account for school this fall. Does that appear as income for D on her taxes or on ours since it is an UTMA account and we are also listed on the account til she is 21?</p>
<p>Money in a UTMA account is an asset of the student’s. If appreciated stock or mutual funds is being sold and a capital gain is realized, that gain is reported on your daughter’s taxes as a capital gain, not as income. Likewise if there’s a capital loss, it’s reported as a credit (up to $3000) on your D’s taxes. When money that’s in a cash account in the UTMA is withdrawn, that money is not considered income.</p>