topic 1099 R for minor in Retirement tax questions

1099 R for minor

nick138 — Sat, 22 Feb 2025 04:30:15 GMT

My child received a 1099-R from his deceased mother's retirement account. The amount is under $7000. Do we need to file taxes on this income? If so, how? Do I include it on my tax return or file a separate one for the child?

Re: 1099 R for minor

maglib — Sat, 22 Feb 2025 04:41:52 GMT

@nick138 so sorry for your loss.

You can not claim their income as although they are a qualifying child dependent, the child has to meet the following conditions:

The child’s only income is from interest and dividends, including capital gains distributions and Alaska Permanent Fund dividends. (sadly, a 1099-R does not qualify)
The child’s gross income for 2024 is less than $13,000. This limit increases to less than $13,500 for 2025.
The child is required to file a return for the year.
The child does not file a joint return for the year.
There were no estimated tax payments for the child for the year (including any overpayment of tax from the child’s prior year return applied to the current year estimated tax).
There was no federal income tax withheld from the child’s income.

So sadly your child will have to report the income and any other dividends, interest, etc on their own return.

You will need to have your own return completed as there will be needed information that must be included on your childs return. The first $1,350 of unearned income is tax-free, the next $1,350 is taxed at the child's rate and any amount above $2,700 is taxed at the parents' rate.

Do note it will be cheaper to purchase a desktop version of Turbotax as you can do up to 5 returns on the desktop version.

Re: 1099 R for minor

Opus 17 — Sat, 22 Feb 2025 06:39:50 GMT

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.

Re: 1099 R for minor

maglib — Sat, 22 Feb 2025 06:42:00 GMT

https://www.irs.gov/filing/irs-free-file-do-your-taxes-for-free where you can possibly file their return for free