son aged 17 charged interest on bank account?

Question

Sorry but i need to know should he be paying tax on his current account. he's still at college and doesn't work

Answer 1

If he is full time education, he can complete an R85 tax exemption form. They should be available at the bank and they register it for him. He will need his national insurance number and a pen (to sign the form, banks never have any pens)

Answer 2

I think what you mean is, your son who is 17 earned interest on the bank account, and it was subject to an income tax.... If so... he had an income. He has to pay income tax. Or, do you mean, he EARNED interest?

But, in most bank accounts, the interest rates are so low, it cannot be a significant amount. You could choose an account with no interest so you don't have to worry about this.

My bank does not report any interest less than 50 dollars to IRS or give me a form of any kind for this interest. I pay tax on this anyway as I keep my own record.

If he is your dependent, just roll it into your filing. It can't make any significant difference one way or the other.

Answer 3

A: if it is a custodial account (and it should be) then there is no tax consequence for interest earned
B: Unless the account generates a significant amount of interest, a 1099 will be submitted at the end of the year under the Custodians name if the child is under 18 and has no reported income.

Answer 4

He needs to apply for exemption - the bank will give him the form.

Deducting tax is automatic by banks (unless a child).

Answer 5

If he grossed more than 1400.00 he would be subject to possible tax on the 1099-int income

Answer 6

It's income, so he must pay tax.

Answer 7

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=popup1group&value=8397&target=_blank&site=pfs

Answer 8

er yes.