@casberg88
Simple answer: Yes.
The potentially taxable portion of a 1099-Q is the amount in box 2 (the earnings). The taxable portion is unearned income and the filing threshold for a minor, with unearned income, is $1100.
Your box 2 amount is probably less than that, so it would appear the child doesn't need to file. But, even though no tax is due, there is a 10% non qualified distribution penalty on the taxable portion (10% of box 2). So, they each need to file.
