Yes, your child must report it.
The child needs a separate tax return, income can't be combined with a parent unless the income is only interest and dividends.
The child will be subject to "kiddie" tax because this is not income earned from working.
If using Turbotax Online, you will need a separate account with a different user name and password (they can be linked to the same email). You may be required to pay, due to the inclusion of form 8615 for the kiddie tax. It may be more cost effective to buy Turbotax as a download to prepare both your and your child's return.
