How to Handle Children's Interest

Forum|Forum|3 months ago
April 13, 2026
1 reply
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Good evening,

I have two minor children who received 1099-INTs for interest on savings account and a CD. I'm the joint owner on them, but the 1099's were addressed to the children. The amount of interest was under 1,000 dollars. They have no other earnings.

My question: Because I'm a joint owner, do I need to add those to my return? Or are they considered not reportable because they are under the threshold of the filing for the children.

MaryK4

Level 15

Since the interest is under $1,250 (the 2024/2025 standard deduction for dependents with only unearned income) and the 1099-INTs are in your children's names and Social Security numbers, you generally have two choices:

1. If each child’s total unearned income (interest, dividends, etc.) is under $1,250, they are not required to file a federal tax return. Because the 1099-INT was issued in their SSN, the IRS attributes that income to them, not you. Since they are under the filing threshold, the income is essentially "tax-free" and does not need to be reported anywhere.

2. You could choose to report their interest on your own return if the interest is between $1,250 and $12,500. However, since your children's interest is under $1,000, there is no tax benefit to doing this; in fact, it could actually increase your tax bill because that income would be taxed at your higher marginal rate instead of the child's 0% rate.

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