Two children have 1099-INT with less that $1250 each. Do I need to report this anywhere?

[dhuynh44]

Hi,

Just had a quick question.  I have 2 children, both with a 1099-INT from a savings account (with their own SSN) and selling of government I-bonds under a minors account under my SSN.  Each total less than $1,250 each.  They also each have a 1099-DIV with less than $10 gained.  Do I have to report this anywhere on Turbotax?

Also, for the 1099-INT they received from their government issued I-bonds, does their interest income have to be reported under my SSN since they were minors under my account on Treasurydirect.gov?

Thank you for any help!

[DianeW777]

No, they are not required to file a tax return based on the interest income, dividends and/or sales that equal less than $1,250.  No it is not required to be included on your tax return.

You can decide to report the interest on your return if they are required to file and you prefer they do not file their own return. 

• Form 8814 Instructions

Dependents:

You must file a return if any of the following apply.

1. Your unearned income was more than $1,250.
2. Your earned income was more than $13,850.
3. Your gross income was more than the larger of:
   1. $1,250, or
   2. Your earned income (up to $13,450) plus $400.

@dhuynh44

[Edited: 03/j06/2024 | 12:47 PM PST\

[dhuynh44]

Thank you!

[dhuynh44]

@DianeW777 

Am I able to ask you in this thread where I can input contributions to a qualified 529 AZ plan in Turbotax?  I believe I cannot deduct this federally but I can at the state AZ level.  Thank you

[DianeW777]

Yes, you can  ask in this thread.  When you are in the Arizona (AZ) tax return continue to the page 'Any Income Adjustments?'.

Next scroll to 'I have a qualified 529 plan or an ABLE account', press Continue and answer the questions about your 529 plan, then enter the amount for 2023.

You will be asked the Beneficiary first and last name and the amount of contribution.

AZ FAQs 529 Contributions

Effective September 29, 2021, for Tax Year 2021 and after, the state of Arizona offers a tax deduction each year for investing in the Arizona 529 Plan or any state’s 529 plan of up to $4,000 per beneficiary for married tax filers who file a joint return and up to $2,000 per beneficiary for individual tax filers. There is no limit on the number of beneficiaries Arizona residents can make contributions to in a tax year.

                

@dhuynh44

[dhuynh44]

@DianeW777 

Thank you.  If I may, I think this might be my final question for this year hopefully.  We received a an Arizona Families Tax Rebate in 2023.  It is subject to federal income tax but not for AZ.  How can we subtract this from our gross income for 2023 Arizona?  Thank you!

[Vanessa A]

You should have received a 1099-Misc for the rebate.  When you walk through the AZ part of the return, you will be given the chance to make adjustments to your federal income.  Here you will remove the rebate from your AZ taxable income. 

[dhuynh44]

@Vanessa A 

Thanks I'll take a look, would you happen to have a screenshot or title of this particular section as a reference?  Thank you

[Vanessa A]

The top of the screen will say Adjustment for Arizona Families Tax Rebate.  It is at least mid way through the questions, so if you do not get to it too quickly, keep going.