I thought about this subject due to American bringing up the theme in another thread. This is interesting to me.

I went to the IRS website, it is very extensive, and I could be there all day to answer the question; don't you have to have a social security number for your child to add them to your income tax return?

Are there any IRS experts out there that can maybe shed light on this question or subject?

American, if you actually know moms that have children minus the #, could you explain how they bypass this issue, if you know?

I also have savings accounts and CD's in my children's name. It is customary to give your social security numbers to the financial institution as they have to report interest income to the IRS.

American's thoughts and my inspiration of this topic are below:

"Some families we know even recommend NOT obtaining a SS# at the hospital or even thereafter. The only reason for a SS# is if you are collecting government monetary aid for medical reasons for your child or for employment, which wouldn't apply to your child(ren) anyway."

good question.

Social Security Numbers by rule are for governmental tracking for employment & tax purposes and those in need of government aid for medical reasons. People we know who didn't get one said it wasn't worth it financially in the end to give up the security and privacy of their family. CDs, I believe that you can have them in your own name, theirs as beneficiaries and therefore don't need their SS#? But, I am not positive. No one we know got a SS# until employed or of employment age, dealing with college paperwork and the like.

I like having savings and CD accounts for my kids, their money is making money. I think that it's an important finacial decision for us because their accounts holds more than spending money.

I also like having these acounts in their names because children do not have to claim interest income as long as it is below a certain amount. I think it is -they can't make more than 3 or 5,000 dollars in interest income before they would have to have their own income tax return to file?
With that money in the kids names, Hubby and I don't have to claim it as our income. Again, I need an expert on this. I hope someone can come up with some answers....