The following resources are presented in response to a comment/question from Karen.
Do Kids Pay Taxes On Interest Income?
Karen has two kids, ages 10 and 12, who have ING Direct accounts. They’ve earned some interest in 2006. Do they have to pay taxes? If so, how much, and at what rate? Karen, as best as I can tell, if your kids earned LESS than $850 in interest income, no taxes are owed. If they earned MORE than $850 but less than $1700, taxes must be paid at the child’s rate. Finally, if the earned MORE than $1700, taxes must be paid at parents rate. (I am not a tax planner, and I do not give tax advice. Please read the articles below for more information!)
IRS Publication 929 (PDF File)
I hope these resources can help you out!
You’re AWESOME! Thanks!! Perfectly answered my question!
Interesting post even though I ain’t got kids.