That property can include a savings account or bond. Each person may receive a share of any interest from the property as determined by local law. Income from property given to a child. Property you give as a parent to your child under the Model Gifts of Securities to Minors Act, the Uniform Gifts to Minors Act, or any similar law, becomes the child's property. Income from the property is taxable to the child, except that any part used to satisfy a legal obligation to support the child is taxable to the parent or legal guardian having that legal obligation.
Savings account with parent as trustee.
Interest income from a savings account opened for a child who is a minor, but placed in the name and subject to the order of the parents as trustees, is taxable to the child if, under the law of the state in which the child resides, both of the following are true. The savings account legally belongs to the child. The parents are not legally permitted to use any of the funds to support the child. Form 1099-INT . Interest income is generally reported to you on Form 1099-INT , Interest Income, or a similar statement, by banks, savings and loans, and other payers of interest.