The children would likely file their own tax returns.
If you choose to include your child's income, the first $1,300 of their income isn't taxed, but the next $1,300 may be taxed at up to 10% in 2024.
The general rule is that a parent can claim a dependent child's investment income on their own return up to a certain amount —above that, the child needs to file themselves.
To claim your child's income on your return, they must be a qualifying child dependent.
You can use IRS Form 8814 to report your child's income on your tax return instead of them filing a separate tax return. You might find it easier and cheaper to include your dependent's income on your tax return.
See TurboTax Help here.
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