Hi mp2023_1,
Congrats on your dependent child winning the prize $2,000 on a chess tournament. The prize winning is considered ordinary income (not unearned income.)
Since his is a Single dependent, based on Table 2, 2022 Filing Requirements for Dependents:
Quote
You must file a return if any of the following apply.
1. Your unearned income was more than $2,900 ($4,650 if 65 or older and blind).
2. Your earned income was more than $14,700 ($16,450 if 65 or older and blind).
3. Your gross income was more than the larger of:
a. $2,900 ($4,650 if 65 or older and blind), or
b. Your earned income (up to $12,550) plus $2,150 ($3,900 if 65 or older and blind)
Unquote
Page 4 of IRS Pub 501, Dependents, Standard Deduction, and Filing Information
https://www.irs.gov/pub/irs-pdf/p501.pdf
$2,000 is under all thresholds. Therefore, your dependent son has no filing requirement, and you do not need to report the income on your tax return neither.
Hope the above helps. Thank you.
Kochu Kitty
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