Under state law, half the income from the account belongs to you, and half belongs to your husband. If you file separate returns, you each report half of the income. 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 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. For information on the penalty and any interest that applies, see Penalties in chapter 2 .