Lol @ all the complicated answers here. The simple fact is the IRS knows about your gains bcuz your broker reports them. So if you make enough to file a return anyway, just include them. If you don't make enough to file a return, don't worry about it. And FYI - the IRS isnt coming after anyone for a few hundred bucks in unreported gains. They're after the big fish with millions in hidden income, not regular folks with tiny stock sales.

Adding to what others have said - the key thing to remember is that the IRS has automated matching systems. When your broker sends them a 1099-B showing your stock sales, their computers automatically check to see if those transactions appear on your tax return. Even for small amounts like your sub-$1000 gain, if there's a mismatch, you'll likely get a CP2000 notice in the mail asking you to explain the discrepancy. This creates unnecessary paperwork and stress, even if you don't end up owing any additional tax. Since you mentioned these are long-term gains and you're likely in a lower income bracket, you're probably right that they'll be taxed at 0%. But reporting them is still required and honestly pretty straightforward once you have your 1099-B form. Just fill out Schedule D and Form 8949 - it's a few extra lines but saves you potential headaches later. Better to spend 15 minutes reporting them correctly now than dealing with IRS correspondence later!

One thing to consider - if you manage to transfer everything to your personal account before 21 (which might be possible depending on your state), make sure you understand the cost basis of all your investments. This is SUPER important for when you eventually sell. The cost basis is the original purchase price of each investment and determines how much gain or loss you'll have when selling. Since UGMA accounts often involve investments made over many years, you might have different cost basis for different lots of the same stock or ETF. Make sure this information transfers correctly or you could end up overpaying on taxes later.

Just wanted to add another important consideration - make sure you have a clear understanding of what happens to any automatic investments or dividend reinvestment plans (DRIPs) that might be set up in the UGMA account. If you have automatic monthly contributions going into the UGMA or dividends being automatically reinvested, you'll need to coordinate the timing of your transfer carefully. You don't want new money flowing into an account you're trying to close, and you definitely don't want to miss out on dividend payments during the transfer process. I'd recommend contacting both your current UGMA custodian and your new brokerage to ask about their typical transfer timeline. Some transfers can take 2-3 weeks, and you want to make sure any pending transactions or scheduled investments are handled properly. Also ask if there are any transfer fees - some brokerages charge $50-100 for outgoing transfers, which could eat into your $27k if you're not prepared for it.

I totally get that feeling of needing to mentally prepare before opening IRS mail! I went through the same thing last year when I received a letter from the Austin Processing Center about my freelance business. I let it sit on my kitchen counter for almost a week, building up all these worst-case scenarios in my head. When I finally opened it, it turned out they just needed me to verify some 1099 income that didn't exactly match what I reported on Schedule C - literally a $47 difference due to a client's reporting error. Took one phone call and a simple letter to resolve. The waiting and wondering was definitely the hardest part. Now I have a rule: IRS mail gets opened the same day I receive it, even if I can't deal with whatever's inside immediately. At least then I know what I'm working with and can plan accordingly. Whatever's in your letter, you'll handle it just fine. And if you need help figuring out next steps once you open it, this community is fantastic for walking through the process. Looking forward to your update when you're ready to tackle it!

I completely understand that anxiety! I received a similar letter from the Fresno center about 6 months ago regarding my photography business taxes, and I did the exact same thing - let it sit there while I mentally prepared for the worst possible scenario. Turns out it was just a CP2000 notice asking me to verify some 1099 income that a client had reported slightly differently than what I had on my records. The whole thing was resolved with a simple response letter and took maybe 30 minutes of actual work, but I probably spent hours worrying about it beforehand! One thing I learned from that experience is that the letter itself will tell you exactly what type of notice it is right at the top, and that can immediately help you gauge how serious it is. Most of the time, if it's something urgent like an audit, they'll make that very clear upfront. My advice would be to open it with a trusted friend or family member nearby if that helps with the anxiety - sometimes having moral support makes these things feel less overwhelming. And remember, even if it does require some action on your part, the IRS generally provides clear instructions on what they need and reasonable timeframes to respond. You've got this! Please update us when you find out what it is - I'm sure it'll be much more manageable than your mind is making it out to be.

I did a broker transfer from Merrill to TD Ameritrade about a year ago and can confirm it's not a taxable event for standard stock positions. The ACAT process moved everything without triggering any sales. One thing I'd add that might be helpful - if you have any foreign stocks or ADRs (American Depositary Receipts), those sometimes have special handling during transfers. In my case, I had some European stocks that took an extra few days to transfer compared to my domestic positions. The brokers had to coordinate with the foreign custodians, which added some complexity but didn't change the non-taxable nature of the transfer. Also worth mentioning - if you have any automatic investment plans or recurring purchases set up, make sure to pause those before starting the transfer. I forgot about a monthly investment plan and it tried to execute during the transfer window, which created some confusion that took a few days to sort out. The whole process took about 8 business days for me, and TD Ameritrade covered the $75 ACAT fee from Merrill. Having better research tools and platform features has definitely been worth the temporary inconvenience of the transfer process.

I recently went through this exact same process when transferring from Fidelity to Interactive Brokers last month. Can confirm it's not a taxable event - the ACAT transfer moved all my positions without any sales being triggered. One thing I'd recommend that saved me some headaches: before initiating the transfer, log into your current broker's website and download/print comprehensive reports showing your complete cost basis history for all positions. Not just the summary, but the detailed lot-by-lot breakdown showing every purchase date and price. I also took screenshots of every account page showing my holdings. This turned out to be super valuable because about 3 weeks after my transfer completed, I noticed that one of my older positions (a stock I'd been buying regularly for 4+ years) had some cost basis discrepancies. Having my original detailed records made it really easy to work with Interactive Brokers to get everything corrected. The transfer itself took 7 business days, there was a $75 fee from Fidelity that IB reimbursed, and I'm much happier with the lower costs and better trading platform. Just make sure you don't have any pending trades or unsettled funds when you start the process, as that can delay things.

Don't forget about state taxes too! Had an internship in California while being a resident of Texas and got absolutely blindsided by CA state taxes that took like 9% of my intern pay even though I was only there 12 weeks.

This is such a common confusion for students! One thing that hasn't been mentioned yet is that you should also consider whether you'll have any education expenses this year that could qualify for tax credits like the American Opportunity Tax Credit (AOTC). If you file independently and have qualifying education expenses, you might be able to claim up to $2,500 in credits yourself. But if your parents claim you as a dependent, they get to claim those credits instead (assuming their income isn't too high). The AOTC phases out for higher-income taxpayers, so sometimes it's more valuable in the student's hands. Also, make sure you understand how your stipend is classified. Some internship stipends are considered wages (subject to payroll taxes), while others might be considered fellowships or scholarships (which have different tax treatment). Your employer should clarify this on your tax documents. The key is running the numbers both ways - total family tax liability with you as dependent vs. independent - and seeing which scenario saves the most money overall for your family.