We have saving accounts in our children's names.. I do have total 2006 interest earned information into the account (pretty small amount, it is shown on our quarterly bank statement), but I never got any tax paperwork from our bank (Bank of America).I've gotten all tax paperwork from all sources except for this.. so I'm wondering if I'm missing something here because I'm pretty sure I have to report this as "interest income", correct?
The bank only needs to send a 1099 if the interest for the account is $10 or more.You still need to report it on your taxes.- Megan
Are these accounts in your children's name only? If so, it would technically go on *their* returns. So if they don't need to file, you're all set.You have the option to report it on your return, but that's generally just for simplicity. No reason to add tax to your return if its not reportable for them.Who Must File: Dependents (since I assume you claim them :) ):http://www.irs.gov/publications/p17/ch01.html#d0e1974
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