My wife opened a 12 Month Certificate to my 11 year old son. Bank sent a 1099-INT with his social number. how is this treated?

[HelenaC · Accepted solution]

The IRS has a cutoff level for "unearned income," such as dividends or interest. If your child's income is above $1,050, he has to file; below $1,050, he isn't required to file a tax return.

If the child has both earned (i.e. W-2 or 1099MISC) and unearned income, both amounts must be added together to determine if the total income triggers the mandatory filing requirement. 

Filing on your child's behalf

If your child is required to file a tax return for unearned income, the IRS gives you the option of claiming the money on your return instead. There are certain restrictions, including a limit to the amount of money involved, and the tax you’ll owe may be greater than if your child filed an individual return. If you qualify, file Form 8814 with your 1040 and the IRS will not require your child to file.

To claim your son's interest on your return, see Do I need to report my child's 1099-INT on my return?

See the screenshot below.