Hello,
I have been using Turbotax for over a decade to file our family's taxes.
We have two teenagers (13yrs & 15yrs) who we claim as dependents on our "married filing jointly" returns.
Last summer, my employee credit union offered "Teenage Certificate" accounts with free courses / webinars to help kids learn about saving, benefits of compounding and so on. So, we opened two accounts - one for each child - with my wife and I as joint account owners / "custodians"(?) till they turn 18yrs.
As expected, the employee credit union sent 1099-INTs for both accounts.
1. They 13yr old's account shows ~$100 in interest on the 1099-INT
2. The 15yr old's account shows ~$250 in interest on the 1099-INT. The 15yr old also started a part time summer job teaching tennis to kindergartners and has a W-2 with around $230 of wages.
Questions:
1) Do we need to report the interest earned on their certificate accounts? If so, what is the right way to report this?
a) Do we need to file a return for each child showing the 1099-INT. e.g. for the 13yr old, the return will only show the 1099-INT as income? OR
b) Since we claim them both as dependents on our returns AND because we are custodian's of their certificate accounts, would BOTH of their 1099-INT be reported on our return?
2) Do we need to file a separate return to report our 15yr old's W-2 income? No taxes were withheld by her employer.
Thank you for any input / guidance in advance.
