Are there tax implications for a guardianship?

Yes, there can be tax implications for guardianship in Ohio. Generally, guardians must file an annual guardian’s report to the county probate court and pay a guardian filing fee. The guardian must also file tax returns for the ward (the person who the guardian is responsible for). For example, if the ward earned income, the guardian must file a federal and Ohio state income tax return for the ward. Additionally, if the guardian is receiving money for the ward’s care, they may have to pay taxes on that income. Generally, trusts set up for the ward can avoid taxes on income. Furthermore, the guardian can file for the ward to get special tax credits, such as the Earned Income Credit. The guardian can also claim the ward as a dependent on their own tax return, as long as the guardian provided more than half of the ward’s support during the tax year. More complicated tax implications may arise, according to the circumstances of the guardianship. For example, if the ward has investments held in trusts, or has dividends or other profits from investments, the guardian must report this income correctly on the tax forms. Guardians should contact a tax specialist if they are uncertain how to report the ward’s income on the taxes.

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Are there tax implications for a guardianship?

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