Minor Income

My minor daughter, 13, who is my dependent, has earned interest on her savings account. The savings account is a custodian account with me as the main account holder. I was told by my bank that the 1099 will be filed under her SSN. The interest is $200. Do I need to include this on my tax return? Does she need to file taxes herself for the interest (she has no other income)?

posted

No, if this is her only income, neither of you need to report it. Children who have unearned income, such as interest, are not subject to tax on it until it exceeds $2,600.

Source: IRS Topic 553

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