1099-Misc for Dependent Child

[Hal_Al]

Q. So even though my kids are 10 and 9 years old. I should file these separately under each of them individually?! It can’t be done under mine?

A.  That's correct. If his only income is from interest and dividends, Alaska PFD or capital gains distributions shown on a 1099-DIV, there is a provision for entering it on your return, using form 8814.   But, just because this is prize money over $1100, he has to file his own tax return.

You do not report his/her income on your return. If it has to be reported, at all, it goes on his own return. If your dependent child is under age 19 (or under 24 if a full time student), he or she must file a tax return for 2021 if he had any of the following:

1.          Total income (wages, salaries, taxable scholarship etc.) of more than $12,550 (2021).
2.          Unearned income (interest, dividends, capital gains, unemployment, 1099-Misc income, taxable portion of 529 distribution) of more than $1100.
3.          Unearned income over $350 and gross income of more than $1100
4.          Household employee income (e.g. baby sitting, lawn mowing) over $2300 ($12,550 if under age 18)
5.          Other self employment income over $432, including money on a form 1099-NEC

[Vanessa A]

That is correct.  You cannot report your children's 1099 Misc income on your return even if they are only 9 and 10 years old.