1099-MISC for Child's Prize Award

[dmclachlan]

In 2025, my minor child won a trip valued at over $600, so he received a 1099-MISC in his name with the amount reported in box 3. He has not filed income taxes in the past and has no other income. Do I file this under my taxes or do I prepare a tax return in his name? If the answer is the latter, can I still claim him as a dependent on my taxes? And how do I ensure that this is input on the tax form as a prize value and not self-employment income? Thank you!

[rjs]

You cannot report your son's prize income on your tax return. If it has to be reported at all, it would have to be on his own tax return. The first question is whether he is required to file at all. If he his, the next question would be whether he is subject to kiddie tax. To answer these questions we need to know the exact amount of the prize on the 1099-MISC.

You will still be able to claim him as a dependent as long as he did not provide more than half of his own support for the year. It seems unlikely that he did that.

Since you call him a minor, I am assuming that he is under 18 years old.

[rjs]

To clarify, if your son is not required to file a tax return, the income will not be reported anywhere.

[dmclachlan]

@rjs - Thank you for your reply! The amount is $2,006. And yes, he's under 18 - he was 13 in 2025.

[rjs]

The prize is unearned income. That means income that is not from working. Since it's over $1,350 your son is required to file a tax return and report the income. Since it's not over $2,700 he will not be subject to kiddie tax. (The $1,350 and $2,700 amounts are for 2025. They are adjusted for inflation every year.)