Child Income
Child Income Tax Treatment
After December 31, 2018, any interest, dividend, royalty or other income received by a child under 18 years old is added to the gross income of the parent, and subject to income tax. Only service income, even if not received by the child, is included in the child’s gross income. However, the tax is still considered assessed to the parent if not paid by the child. If the parents have joint custody of the child, then 50% of the income shall be distributed to each of the parents or guardians.
Credit for dependent consideration
In Puerto Rico, a parent is eligible to request the credit for a dependent (Child Tax Credit, or CTC) even if the dependent receives income. However, a qualifying relative who receives income of $3,300 or more, regardless of age, does not qualify as a dependent.