What is tax effect for my kid to have savings account ?

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What is tax effect for my kid to have savings account ?

2007-03-16 07:04:08 · 2 answers · asked by dskjoa 1 in Business & Finance ➔ Personal Finance

2 answers

The bank will generate a 1099 if the account earns more than $10 in interest for the year. If it does, and you claim your children as dependents, then this needs to be reported on your returns.

This is assuming we're just talking about a standard savings account and a basic tax return.

2007-03-16 07:24:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋

jrzee is right, you claim child as dependant, and will put any taxable interest gained on your tax form. This will continue as long as child is claimed as dependant.

2007-03-18 10:05:42 · answer #2 · answered by leonard k 3 · 0⤊ 0⤋