Simple answer: yes. All income must be reported.
Where you report it may be the better question. If the CD is in your name and SS#, you must report the income on your return.
If it is in his name a SS#, report it only if it is more than $1050.
You do not report his/her income on your or his parent's 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 2018 if he had any of the following:
1. Total income (wages, salaries, taxable scholarship etc.) of more than $12,000 ($6350 in 2017).
2. Unearned income (interest, dividends, capital gains) of more than $1050.
3. Unearned income over $350 and gross income of more than $1050
4. Household employee income (e.g. baby sitting, lawn mowing) over $2100 ($12.000 if under age 18)
5. Other self employment income over $400, including box 7 of a 1099-MISC
**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 the parent's return, using form 8814. Enter at Less common income / Child's income.
