Income Tax Question

[tiggerlover]

Do I have to claim the interest earned on a savings account in my sons name on my taxes?

 

[Boo'sMom]

yes, if he is claimed as your dependent

 

[Free4Life11]

Here is some information from the IRS.

Parent's Election To Report Child's Interest and Dividends

You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. If you do, your child will not have to file a return.

You can make this election for 2005 only if all the following conditions are met.

-Your child was under age 14 at the end of 2005. (A child born on January 1, 1992, is considered to be age 14 at the end of 2005; you cannot make the election for this child.)

-Your child is required to file a return for 2005 unless you make this election. [see below]

-Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends).

-The dividend and interest income was less than $8,000.

-No estimated tax payment was made for 2005 and no 2004 overpayment was applied to 2005 under your child's name and social security number.

-No federal income tax was taken out of your child's income under the backup withholding rules.

-You are the parent whose return must be used when applying the special tax rules for children under age 14. (See Which Parent's Return To Use, earlier.)

A dependent must file a return if all his or her income is unearned income [interest income is unearned], and the total is more than the amount listed in the following table:

Single, Under 65, and not blind: $ 800

 

[tiggerlover]

Thank you.

 

[dbarker]

How old is this child? How much interest did he earn? He could possibly claim it himself and not owe any taxes. Feel free to pm or email me.