Do I need to report a 1099-INT form received from my child's account on my return?

[Emom1]

I am on the account because they are minors

[IreneS · Accepted solution]

Maybe.  It depends on the amount of interest and whether the child was ordinarily have to file a return.

If the child's unearned income (like interest and dividends is $1,100 or less the child does not have to file a return to report the interest.  You do not have to include it on your return.  If the child's unearned income (like interest and dividends) is greater than $1,100 they would ordinarily need to file a return.

You, as a parent, can elect to report your child's interest income on your return so that the child does not have to file their own return.This is done using Form 8814.

You can make this election if your child meets all of the following conditions.

1. Your child was under the age of 19, or a college student under the age of 24, and,
2. Had investment income (interest, dividends and capital gains distribution) of less than $10,500 for the year, and,
3. Had no earned income from wages, salary and tips or other types of taxable income.

However, depending on your tax bracket, it may be more beneficial to have your child file their own return.  Be sure on the child's return to check the boxes:

• they can be claimed on someone else's return; and
• they are being claimed on someone else's return

This is very important because you want to claim them on your return

While they wouldn't get an exemption (because you are claiming them as a dependent), they would probably receive a standard deduction of $1,100 to reduce the taxable amount.

If you choose to prepare a return for your child, your TurboTax Online login is only good for 1 return.  But you can use the same email address for 5 accounts.   Please see this FAQ to start a second return.

[Edited | 4/15/2020 | 5:16pm PDT]