My son received a 1099 for interest income in the amount of $10.27. Do I have to report this to the IRS? If so, do I report it on my income taxes? Please advise.
Thank you!
Daniel
- posted
13 years ago
Are we required to report my son's interest income?
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- posted
13 years ago
If that's his only income for the year, no need to report it.
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- posted
13 years ago
The first $950 of interest/dividend income is tax-free, the next $950 is taxed at 10%, and the remainder is taxed at the parent's rate. Each year the $950 increases for inflation. The 10% rate may go away when the Bush tax cut expires, but I got a feeling it will stay.
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- posted
13 years ago
... because it is below the threshold (currently $950 for dependent minors) where reporting might be necessary. So unless his income goes up a bunch, you don't have to report it.
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- posted
13 years ago
Thank you very much guys! I appreciate everyone's response.