No. That does not change the answer. Furthermore, since the bonds are in the child's name, interest will be reported on the child' s return. Depending on the amount, he may not have to file. On the other hand, depending on the amount he may be subject to the "kiddie tax" (child's investment income is taxed at parent's marginal tax rate.
If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2019 if he had any of the following:
- Total income (wages, salaries, taxable scholarship etc.) of more than $12,200.
- Unearned income (interest, dividends, capital gains) of more than $1100.
- Unearned income over $350 and gross income of more than $1100
- Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.200 if under age 18)
- Other self employment income over $400, including box 7 of a 1099-MISC
Even if he had less, he is allowed to file if he needs to get back income tax withholding. He cannot get back social security or Medicare tax withholding.
In TurboTax, he indicates that somebody else can claim him as a dependent, at the personal information section.
If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814. Enter at Less common income / Child's income.
