Form 8814 – Parents’ Election to Report Child’s Interest and Dividends

Last reviewed: 2025‑10‑26

Use the IRS Form 8814: Parents’ Election to Report Child’s Interest & Dividends (2024) Tax Form Calculator IRS Form 8814: Parents’ Election to Report Child’s Interest & Dividends (2024) as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 8814 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

IRS Form 8814 allows eligible parents to report their child’s unearned income—such as interest and dividends—on the parent’s tax return instead of filing a separate return for the child. This option can simplify tax filing but may increase the total tax owed depending on the parent’s income bracket.

Eligibility rules and key points:

Child’s age: Must be under 19 (or under 24 if a full-time student).
Income type: Must consist solely of interest and dividends, including capital gain distributions.
Income limit: The child’s total income must be below the IRS threshold for the tax year.
No estimated tax payments: The child must not have made any estimated tax payments or had federal income tax withheld under the backup withholding rules.

Parents' Election To Report Child's Interest and Dividends
Name(s) shown on your return			Your social security number
Caution: The federal income tax on your child’s income, including qualified dividends and capital gain distributions, may be less if you file a separate tax return for the child instead of making this election. This is because you cannot take certain tax benefits that your child could take on his or her own return. For details, see Tax benefits you cannot take in the instructions.
A Child's name (first, initial, and last)			B Child’s social security number
C If more than one Form 8814 is attached, check here ▸
Part I. Child’s Interest and Dividends To Report on Your Return
1a	Enter your child’s taxable interest. If this amount is different from the amounts shown on the child’s Forms 1099-INT and 1099-OID, see the instructions			1a
b	Enter your child’s tax-exempt interest. Do not include this amount on line 1a	1b
2a	Enter your child’s ordinary dividends, including any Alaska Permanent Fund dividends. If your child received any ordinary dividends as a nominee, see the instructions			2a
b	Enter your child’s qualified dividends included on line 2a. See the instructions	2b
3	Enter your child’s capital gain distributions. If your child received any capital gain distributions as a nominee, see the instructions			3
4	Add lines 1a, 2a, and 3. If the total is $ or less, skip lines 5 through 12 and go to line 13. If the total is $ or more, do not file this form. Your child must file his or her own return to report the income			4
5	Base amount			5
6	Subtract line 5 from line 4 If both lines 2b and 3 are zero or blank, skip lines 7 through 10, enter -0- on line 11, and go to line 12. Otherwise, go to line 7.			6
7	Divide line 2b by line 4. Enter the result as a decimal (rounded to at least three places)	7
8	Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places)	8
9	Multiply line 6 by line 7. Enter the result here. See the instructions for where to report this amount on your return	9
10	Multiply line 6 by line 8. Enter the result here. See the instructions for where to report this amount on your return	10
11	Add lines 9 and 10			11
12	Subtract line 11 from line 6. Include this amount in the total on Form 1040, line 21, or Form 1040NR, line 21. In the space next to line 21, enter “Form 8814” and show the amount. If you checked the box on line C above, see the instructions. Go to line 13 below			12
Part II. Tax on the First $2,100 of Child’s Interest and Dividends
13	Amount not taxed			13
14	Subtract line 13 from line 4. If the result is zero or less, enter -0-			14
15	Tax. Is the amount on line 14 less than $? No. Enter $ here and see the Note below. Yes. Multiply line 14 by 10% (). Enter the result here and see the Note below. Note: If you checked the box on line C above, see the instructions. Otherwise, include the amount from line 15 in the tax you enter on Form 1040, line 44, or Form 1040NR, line 42. Be sure to check box a on Form 1040, line 44, or Form 1040NR, line 42.			15

Considerations before electing to use Form 8814:

Filing on your return subjects the child’s income to your tax rate, which could result in a higher overall tax bill if the child would otherwise qualify for a lower rate.
Including the child’s income on your return may affect your eligibility for certain deductions and credits, particularly those that are sensitive to adjusted gross income (AGI).
Form 8814 does not accommodate other types of income (such as wages or self-employment earnings). If present, the child must file their own tax return.

We recommend comparing both options—filing separately vs electing via Form 8814—especially if the child receives qualified dividends or capital gain distributions taxed at preferential rates.

Last reviewed: 2025‑10‑26: If you believe this form requires an update, please contact us.

Practical tips for Form 8814 filers

Before filing, gather all Form 1099-INT and 1099-DIV documents issued to your child. Confirm the income is eligible and within limits, and that no disqualifying income sources exist. Then, assess how including the child’s income may affect your tax profile, especially if you’re close to any credit or deduction phase-outs.

Where possible, use tax software that can simulate both scenarios—parent election vs child separate return. This allows a side-by-side comparison of total tax owed under each scenario. Often, it reveals that filing separately may be the more efficient choice for families with investment income subject to lower child rates.

Keep a complete copy of Form 8814 and all supporting records for at least three years. If the IRS requests clarification or documentation, you’ll need to show eligibility for the election and confirm income amounts reported.

Frequently Asked Questions

Can I estimate the General Business Credit?

Start with Form 3800 and then reflect the credit here.

How much would a 401(k) contribution change my net?

Model it with the 401(k) Calculator then rerun this page with your pre-tax amount.

Considering an IRS Offer in Compromise?

Read through Form 656-B to understand eligibility and steps.

What does FICA include?

FICA includes Social Security and Medicare payroll taxes withheld from employee wages.

Is there a quick pay-frequency comparison?

Yes—switch frequency on this page; for employer filings see 941 vs 944.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.

Form 8814 – Parents’ Election to Report Child’s Interest and Dividends

Practical tips for Form 8814 filers