Kids savings acct int

[gman]

The local bank matches a five dollar deposit every month for a "kids savings acct". Would that five dollars per month match by the bank be reported to the kids as interest? Some are getting 1099s.

[DexEA]

A local bank in our area offered $50 to open a new checking account with the $50 being reported on a 1099MISC in box 3.

[Gary2]

A local bank in our area offered $50 to open a new checking account with the $50 being reported on a 1099MISC in box 3.

I believe the bank is doing it wrong. See Pub. 550. It should be included on the 1099-INT.

[taxea]

The local bank matches a five dollar deposit every month for a "kids savings acct". Would that five dollars per month match by the bank be reported to the kids as interest? Some are getting 1099s.

Yes it would. The money match goes into the account and the earned interest is a result of the total funds in the bank. It is a way to teach the kid to invest.