@Helen123 , please read and/or refer your friend(s) to this [puib from the IRS regarding kiddie tax.. There is also some reference to this situation in the instructions for form 1040/1040-SR
Topic no. 553, Tax on a child's investment and other unearned income (Kiddie tax) | Internal Revenue...
What I don't understand is the reason behind setting up a US bank account in the name of the child ( a new born & us citizen ) -- what are they trying to achieve?
Also child tax credit is for dependent child of US persons ( SO no unless the parents choose to be treated as a US person -- not living here in the US and not earning in the US -- does not make sense to me ). Therefore my question as to what are they trying to achieve ( now or in the distant future ) ?
Is there more help you need ?
pk
