You do not report your dependents 1099-MISC on your return. They'd file on their own return, if they are required to file one. If that is their only source of income and they do not meet the requirements below, they would not need to file a return. So only if their 1099-MISC was $400 (in Box 7 on the form) or more would they need to file their own return. And if this is the case, their return must also indicate that someone else can claim them as a dependent, if you are claiming them as a dependent on your own return.
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For the 1099-DIV's for your kids, if that is the only income they received in 2016 and it was less than $1,050 in interest, dividends, and capital gains distributions combined, then they do not need to report it on any tax return. Since they are under 19, you may elect to report their income on the your return as long as the amount is less than $10,500. But this is an option you have.
Note: If the child's income is $10,500 or more, it must be on the child's tax return. It can't be included on the parents' tax return.
If you decide to include on your return, the election is made on Form 8814, "Parents' Election to Report Child's Interest and Dividends." The first $1,050 of the child's investment income isn't subject to tax, the next $1,050 is subject to tax at 10%, and only the amount over $2,100 will be taxed at the parent's tax rate.
You can do these steps if you want to include their income from this:
- Log into your return and click orange Take me to my return button
- Then type child income in the Search box in the top right
- Choose jump to child income and that will walk you through interview for their income.
Reporting a child's income on a parent's return is largely a convenience, though, rather than a real tax savings. The overall tax might be less if you file a tax return for the child separately instead of adding his or her income to your return.
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