Buffalo, NY (WBEN) - If you have a child this year or the next three years, the Trump administration is introducing an account where the government will provide $1,000 in seed money.
"It's just money that's been given to your kid. That's why it's so wonderful," says The Tax Lady Esther Gulyas. "If you don't even have to file a return, and you have a child that is born in 2025, 2026, 2027, or 2028 if you don't apply for this $1,000 you won't get it. So it can be attached to your tax return, or you can send it in as a as a standalone form, electronically. But in order to get the $1,000 for your child, you have to apply for the you have to apply through your tax return or an independent submission, if you don't file a tax return." Gulyas says look for form 4547.
Gulyas says you must place the money into a bona fide account. "It's got to be through a reputable financial institution. The child has to be US citizen with a social security number, and the child has to be born in 2025, 2026 2027 or 2028 and then over and above that, any other child under the age of 18, you can open up a Trump Account, and you can put up to $5,000 in, and anybody can fund it, a relative, a friend, an employer, can put this money in, and it grows tax deferred until the child is 18," Gulyas explains. She says at 18, the child can then touch the money, but for it to be without a penalty, the child has to use it for education or to buy a first home.
Guylas says there is not income limit on who can apply, as long as the child is born during the current administration.