My 9 year old received a combined tax statement for 2010, (FORM 1099-INT, INTEREST INCOME) for just over $82. As he obviously doesn't work, and has no income, does he truly need to pay taxes on this (or rather, do I have to pay taxes on this)? This was a CD set up for his education, but was not set up as an IRA or 529, just a plain CD. How is he truly supposed to pay this if he is required? Thanks so much!

Since he is a dependent of someone else (namely you, I suppose) he has to file if his unearned income is $950 or more. See page 3 of: http://www.irs.gov/pub/irs-pdf/p929.pdf So no - he does not need to file if his only income is the $82 from that CD.