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If your children receive income reported on a 1099, you must file separate tax returns for them in their own names.
You don't say what kind of 1099. If a child's only income is interest and dividends (1099-INT or 1099-DIV), then you can make a choice to include their income on your tax return instead of filing separate returns for the children. However, if they have investment income (1099-B), prizes or awards (1099-MISC), income from working (1099-NEC) or are beneficiaries of a retirement account (1099-R), then each child must file a separate return in their own name reporting their own income. Most of the time, a child having income and filing a return does not interfere with you claiming them as a dependent.
the 1099 is SSA. My kids are 4 and 8 i am retired
Information flows from your federal return to your state return. And....you do NOT enter your children's SSA1099's on your federal tax return. So they are not going to VA either.
Thank you, so where does the SSA1099 get entered, do they have to claim?
If the child's only income is on a SSA-1099 (survivors benefit, I assume), then it is not taxable and they do not have to file a return. If the child has other income from working or from investments, the social security income might be partially taxable. You would prepare a return in the child's name and let Turbotax tell you if any tax is owed. (If using Turbotax online, each tax return requires a different account with a different user name and password.)
Turbotax may not be able to prepare a free return if the child has taxable income. You may want to look at one of the other IRS FreeFile options.
https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free
Thank you, not survivor benefits, i took early retirement.
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