All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Trusted Pioneer
Posts: 6
Registered: ‎05-09-2015
Accepted Solution

How to report unclaimed property from escheated brokerage account?

I found out that my state, Illinois, is holding unclaimed property. It appears to be a brokerage account that my parents opened up for me in college, maybe 10-15 years ago, and didn't tell me about and they themselves have forgotten about. I called the broker and could only get statements that go back about 7 years. The State took control about 1 year ago.

 

So I am wondering how to report this. I think the state might send a 1099 for any shares they sold, and dividends/interest received while they had control. I will just follow this 1099 for that portion of the account.

 

But what about all the dividends and interest in the past 10-15 years? I don't have all the statements. Should I simply report all cash, minus the 1099, as ordinary income for 2017? Or should I amend all 7 years that I have complete brokerage statements for, and then add what's left to 2017 income? What if my parents find the rest of the statements? Do I amend all 10-15 years?

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: How to report unclaimed property from escheated brokerage account?

Hi leopoldstotch,

 

Welcome to the H&R Block community.

 

For 2017 you only need to report your 2017 income from this account.  You should receive Forms 1099-DIV and 1099-INT for dividends and interest respectively, and Form 1099-B for capital gains from stocks & bonds all in early February.

 

For the previous years, if your income was below the filing threshold for your filing status you probably do not need to report the income.  For instance, if you were single in 2016 and you only earned $6,350 then you do not need to report the investment income for 2016 so long as it does not put your total income over $10,350 (your filing threshold).

 

Any amounts that do need to be reported must be reported on the year for which they were received.  So you'll want to go year by year and determine if you even need to report the income based upon what your income was that year.  I'll guide you as best I can, however, I would suggest meeting with a tax professional who can go over everything with you in person and help you determine what, if anything, you need to report for each year.

 

If you have any other questions I'll be glad to help.

 

Louis,

Senior Tax Advisor (Tampa, FL)

Trusted Pioneer
Posts: 6
Registered: ‎05-09-2015

Re: How to report unclaimed property from escheated brokerage account?

Thank you for the suggestions, I think I will have to search for a local pro to help me out with so many amendments.

Tax Pro
Posts: 5,727
Registered: ‎02-23-2016

Re: How to report unclaimed property from escheated brokerage account?

Welcome.