Form 8814: Parents' Election to Report a Child's Interest

Some parents can report a child's interest and dividend income on the parent's own return. The tool for this is Form 8814, Parents' Election To Report Child's Interest and Dividends. If the election applies, the child may not need to file a separate return. This guide is general information. It is not advice about your return.

The child must meet every test

The instructions list the conditions. Each one must be true for the child.

• The child was under age 19 at the end of 2025, or under age 24 if a full-time student.
• The child's only income was interest and dividends. That includes capital gain distributions and Alaska Permanent Fund dividends.
• The child's gross income for 2025 was less than $13,500.
• The child is required to file a 2025 return.
• The child does not file a joint return for 2025.
• The child made no estimated tax payments for 2025, including any 2024 overpayment applied to 2025.
• No federal income tax was withheld from the child's income.

If any test fails, the election is not available. The child then files a return.

The parent must qualify too

The parent must also meet the rules in the instructions. If the parents file a joint return, they use that return. If the parents do not file jointly, the instructions explain which parent's return to use. For parents who were not married but lived together with the child, only the parent with the higher taxable income can make the election.

How the tax is figured

The instructions say the first $1,350 of the child's interest and dividends is not taxed under this election. The part between $1,350 and $2,700 is taxed at 10% when you make the election. Form 8814 shows how the rest is figured.

The instructions also warn that the rate may be higher. If the child received qualified dividends or capital gain distributions, the instructions say you may pay up to $135 more tax with this election than with a separate return for the child. Read the form line by line, and compare the result with a separate child return if you are unsure.

Why this matters for families

The election can mean one less return to file. Without it, the child files a return to report the same income. The child's own return may also show a tax result. Our guide to the kiddie tax explains a separate set of rules that can apply to a child's unearned income. Read that guide first if the child's income is higher than the amounts above.

Nominee income

Sometimes a child receives interest that actually belongs to another person. The instructions call this nominee income. Do not add it to the total on line 1a. Instead, enter the amount on the dotted line next to line 1a and write "ND," which stands for nominee distribution.

File the form with your return

The instructions say to attach Form 8814 to your tax return and file your return by the due date. Keep a copy of the completed form with the child's statements.

Keep the records

Keep the statements that show the child's interest and dividends, such as the Form 1099-INT and Form 1099-DIV the child received. Keep the form you filed, and keep a copy of the parent's return for the year.

Simple steps

1. Check each child test in the instructions, one by one.
2. Confirm which parent's return is the right one to use.
3. Complete Form 8814 and the parent's return.
4. Keep the child's statements and the completed form.

Upload your documents and answer a few simple questions. Your preparer reviews every deduction and credit and lets you know when your return is ready to sign.

Sources: Sources: IRS, Instructions for Form 8814 (2025) (https://www.irs.gov/pub/irs-pdf/i8814.pdf) This is general information, not advice about your specific return.

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