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taxable interest income?

Sent to Tax Experts January 25 03:29 PM

my wife and I file jointly and her daughter is one of our dependants on our return. Her 10 year old daughter earned $1600 in interest in 2004 on a settlement which is being held at a specific bank drawing interest. The only way to withdraw funds on the account is through the court system. My question is, is this taxable interest income we must report along with my wife and I’s income? I myself didn’t think we had to report it because it is in a trust and can’t easily withdraw from it.

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January 25 4:12 PM (43 minutes and 14 seconds later)
         
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Christopher Phelps -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 2668 Tax Accepts
CPA, CFP, PFS, Tax Practitioner 21 Years, Member AICPA/CSCPA Tax/Financial Planning Committee Member
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