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Kid Financial Update

January 22nd, 2020 at 03:37 pm

I received dividend 1099s yesterday so was able to complete our taxes. I just am waiting for tax software updates now. (I probably won't finalize until I take my tax update class, probably in another week. Make sure I am not missing anything).

Now I am focusing on the kids. DL(14) didn't have any stock sales last year so I should just be able to report his interest/dividends on my tax return. The taxes on that should be $0.

I tried to pull their 12/31 statements to confirm YTD interest income last night but it was +$9 which didn't seem right. I thought the statement was off and decided to deal with it later. Well, this morning I am going through all of DL's statements making sure they match my financial records. I had no idea that their "7% interest" credit union had also done a special dividend this year. +$9, which made the actual interest rate on that account 9% for the year. Wow! (They got a bonus $8/$9 from both of their credit unions).

DL(14) had $53 interest income this year. His allowance was $150 for the year and he deposited another $325 cash during the year. It's hard to say because we switched him from cash to electronic system mid-year when we opened his checking account. Some of that cash may have been accumulated allowance money or gifts from prior years. & clearly he had some cash spending because I know he made some purchases but nothing that came through electronically. But as it stands, he received $528 (gifts) and spent -$0-. 2020 will probably be more thorough in the electronic records since he will have his checking account for the entire year. & I believe he owes me $20 for birthday/Christmas gifts. Will see if he just hands me cash for that or if he needs to make an electronic transfer.

MM(16) will be much more complicated, with the jobs and everything. In fact, he told me he worked for my old/forever employer in 2019 and I didn't believe him (I didn't remember that at all). But in the end, I do have some deposits recorded. I just looked and I did not do a great job of keeping track of that. Unless maybe I threw his pay stub in my tax file. (Is very possible). I generally don't wait for W-2s, or want to make sure the W-2s are correct. I have all that info in Quicken somewhere, so I can probably use that if nothing else. Or maybe he has the pay stub and can produce it. I should probably just ask him.

I will start checking that his bank/interest statements match Quicken. He did his own taxes last year (with my help) and I think he can just do it on his own this year. Even if I sit down and go through it with him every single year, by the time he graduates college he should be more than competent to do on his own. In my house if you have a job, you can do your own taxes. So that is why he did his own taxes last year.

2 Responses to “Kid Financial Update”

  1. creditcardfree Says:
    1579708612

    I teaching my daughter to do her taxes this year. I also was taught by my Dad when I had my first job.

  2. rob62521 Says:
    1579726447

    That's an amazing interest rate...wish we could get something like that every so often.

    Sounds like you have things well in hand as far as getting ready to do your taxes!

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