Correct; if the 1099 is issued in your child's SSN, and the interest income amount is less than $2,500, you don't report the income on your return, and if it's less than $1,250, your child doesn't need to file a return. If it's between $2,500 and $12,500, you can elect to report it on your return as explained in IRS Topic 553.
A minor who may be claimed as a dependent has to file a return once their income exceeds their standard deduction. For tax year 2023 this is the greater of $1,250 or the amount of earned income plus $400 up to the full standard deduction of $13,850.
The IRS also has a cutoff level for "unearned income," such as dividends or interest. If your child's income is above this year's level, they need to file; below that point, they aren't required to file a tax return. The amount for 2023 is $1,250.
See this TurboTax tips article for more information.
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