Kiddie Tax: Form 8615 or Form 8814, and Who It Applies To
Published November 4, 2026
The kiddie tax is a set of rules that can tax some of a child's unearned income at the parent's tax rate. It applies only when the child meets certain age and income tests. The IRS uses two forms for it: Form 8615 and Form 8814. IRS: Topic 553, tax on a child's investment and other unearned income
Who the rules can apply to
The child's unearned income must be more than $2,700 for the tax year. The child must also be required to file a return and must not file a joint return. At least one parent must be alive at the end of the year.
The child must also meet one of these age tests:
- Under age 18 at the end of the year.
- Age 18 at the end of the year, and earned income was not more than half of the child's support.
- A full-time student at least age 19 and under age 24 at the end of the year, and earned income was not more than half of the child's support.
Support includes amounts spent on food, lodging, clothing, education, medical care, recreation, transportation, and similar needs. Count support from you, the child, and others. IRS: Instructions for Form 8615 (2025), Who Must File
What counts as unearned income
Unearned income is generally income other than wages and other pay for work. It includes taxable interest, dividends, capital gains (including capital gain distributions), rents, royalties, and unemployment compensation. IRS: Instructions for Form 8615 (2025), Unearned Income
Form 8615 or Form 8814?
These are two different paths. Your choice depends on the child's income and whether the child files a return.
- Form 8615. The child files a return and attaches Form 8615. Unearned income over $2,700 is taxed at the parent's rate if that rate is higher than the child's rate. The child may also owe the 3.8% net investment income tax, figured on Form 8960.
- Form 8814. The parent reports the child's interest and dividends on the parent's return, and the child does not file. This is an election, not a requirement. It works only if all of these are true: the child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends); the child's gross income is more than $1,350 but less than $13,500; the child is under age 19, or under age 24 and a full-time student, at year end; no estimated tax payments were made for the child; and no backup withholding was taken from the child's income.
The IRS warns that the federal tax can be higher with Form 8814 than it would be on a separate return for the child. Form 8814 is attached to the parent's Form 1040. IRS: Instructions for Form 8814 (2025)
The figures for tax year 2026
The $1,350 amount used in the kiddie tax and in the Form 8814 income limits is set for 2026 by Revenue Procedure 2025-32, section .02. IRS: Rev. Proc. 2025-32 The $2,700 unearned income threshold appears in the 2026 draft instructions for Form 8615. IRS: 2026 draft Instructions for Form 8615 The 2026 draft Form 8814 instructions use the same $13,500 gross income limit. IRS: 2026 draft Instructions for Form 8814
Draft instructions can change before they are final. Check the final 2026 instructions before you file.
A simple example
Illustration only: Suppose a 12-year-old has $4,000 of unearned income in 2026 and no earned income. On Form 8615, line 2 is $2,700 for a child who does not itemize. The remaining $1,300 is the part that can be taxed at the parent's rate, if that rate is higher. The real figure follows the lines and worksheets on the form, so use the form for your case.
Birthdays and the age tests
Certain children with a January 1 birthday are treated as one year older for the age tests. The Form 8615 instructions include a chart for these dates. IRS: Instructions for Form 8615 (2025), Certain January 1 birthdays
Common mistakes
- Assuming the rules stop at age 18 for everyone. A student under age 24 can still be covered.
- Using Form 8814 when the child has wages. Form 8814 covers only interest and dividends.
- Skipping the child's return when Form 8814 is not used. The child must file if a return is required.
- Missing a disqualifier, such as estimated tax payments or backup withholding, that blocks Form 8814.
Checklist
- Find the child's age at the end of the year, and check the January 1 birthday rule.
- Add up the child's unearned income. Check whether it is more than $2,700.
- Check the child's earned income against half of the child's support.
- Decide between Form 8615 (the child files) and Form 8814 (the parent reports).
- Check the final 2026 instructions for Form 8615 and Form 8814 before filing.
If you are sorting out the forms that report this income, read Form 1099-INT and 1099-DIV: The Basics.
General information, not advice for your return.
Sources: IRS: Topic 553 (https://www.irs.gov/taxtopics/tc553); IRS: Instructions for Form 8615, 2025 (https://www.irs.gov/instructions/i8615); IRS: Instructions for Form 8814, 2025 (https://www.irs.gov/instructions/i8814); IRS: Rev. Proc. 2025-32, section .02 (https://www.irs.gov/pub/irs-drop/rp-25-32.pdf); IRS: 2026 draft Instructions for Form 8615 (https://www.irs.gov/pub/irs-dft/i8615--dft.pdf); IRS: 2026 draft Instructions for Form 8814 (https://www.irs.gov/pub/irs-dft/i8814--dft.pdf) This is general information, not advice about your specific return.
