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                                                                                                            Department of the Treasury
                                                                                                            Internal Revenue Service
2023

Instructions for Form 8814

Parents’ Election To Report Child’s Interest and Dividends

Section references are to the Internal Revenue Code unless               lived with you for most of the year (you were the custodial 
otherwise noted.                                                         parent). If you were the custodial parent and you remarried, you 
                                                                         can make the election on a joint return with your new spouse. 
                                                                         But if you and your new spouse don’t file a joint return, you 
Future Developments                                                      qualify to make the election only if you had higher taxable 
For the latest information about developments related to Form 8814       income than your new spouse.
and its instructions, such as legislation enacted after they were        See Which Parent's Return To Use below for more information 
published, go to IRS.gov/Form8814.                                       about which parent’s return to use.
                                                                         Note.     If you and the child’s other parent were not married but lived 
General Instructions                                                     together during the year with the child, you qualify to make the 
                                                                         election only if you are the parent with the higher taxable income.
Purpose of Form
Use this form if you elect to report your child’s income on your return. Which Parent's Return To Use
If you do, your child will not have to file a return. You can make this  If a child’s parents are married to each other and file a joint return, 
election if your child meets all of the following conditions.            use the joint return when electing to report the child’s interest and 
• The child was under age 19 (or under age 24 if a full-time             dividend income on their return. For other situations when the 
  student) at the end of 2023. Full-time student is defined below.       parents do not file a joint return, see Parents Who Don't File a Joint 
• The child’s only income was from interest and dividends,               Return, next.
  including capital gain distributions and Alaska Permanent Fund 
  dividends.
• The child’s gross income for 2023 was less than $12,500.               Parents Who Don’t File a Joint Return
• The child is required to file a 2023 return.
• The child does not file a joint return for 2023.                       For parents who don’t file a joint return and are electing to report the 
• There were no estimated tax payments for the child for 2023            child’s interest and dividend income on their return, the following 
  (including any overpayment of tax from his or her 2022 return          discussions explain which parent's tax return must be used to figure 
  applied to 2023 estimated tax).                                        the tax.
• There was no federal income tax withheld from the child’s 
  income.                                                                Only the parent whose tax return is used can make the election 
                                                                         described earlier under Parents who qualify to make the election.
You must also qualify. See Parents who qualify to make the 
election, below.                                                         Parents are married. If the child's parents file separate returns, use 
                                                                         the return of the parent with the greater taxable income.
Note. The amounts at $1,250 and below are not taxed when using           Parents not living together.       If the child's parents are married to 
this election. See Rate may be higher for more information.              each other but not living together, and the parent with whom the 
                                                                         child lives (the custodial parent) is considered unmarried, use the 
Full-time student.   A full-time student is your child who for some      return of the custodial parent. If the custodial parent isn’t considered 
part of each of 5 calendar months during the year was enrolled as a      unmarried, use the return of the parent with the greater taxable 
full-time student at a school, or took a full-time on-farm training      income.
course given by a school or a state, county, or local government 
agency. A school includes a technical, trade, or mechanical school.      For an explanation of when a married person living apart from his 
It does not include an on-the-job training course, correspondence        or her spouse is considered unmarried, see Head of Household in 
school, or school offering courses only through the Internet.            Pub. 501.
Certain January 1 birthdays. A child born on January 1, 2005, is         Parents are divorced.   If the child's parents are divorced or legally 
considered to be age 19 at the end of 2023. You cannot make this         separated, and the parent who had custody of the child for the 
election for such a child unless the child was a full-time student.      greater part of the year (the custodial parent) hasn’t remarried, use 
                                                                         the return of the custodial parent.
A child born on January 1, 2000, is considered to be age 24 at           Custodial parent remarried.        If the custodial parent has 
the end of 2023. You cannot make this election for such a child.         remarried, the stepparent (rather than the noncustodial parent) is 
How to make the election. To make the election, complete and             treated as the child's other parent. Therefore, if the custodial parent 
attach Form(s) 8814 to your tax return and file your return by the due   and the stepparent file a joint return, use that joint return. Don’t use 
date (including extensions). A separate Form 8814 must be filed for      the return of the noncustodial parent.
each child whose income you choose to report on your return. You         If the custodial parent and the stepparent are married, but file 
can make the election for one or more children and not for others.       separate returns, use the return of the one with the greater taxable 
Parents who qualify to make the election.     You qualify to make        income. If the custodial parent and the stepparent are married but 
this election if you file Form 1040, 1040-SR, or 1040-NR and any of      not living together, the earlier discussion under Parents not living 
the following apply.                                                     together applies.
• You are filing a joint return for 2023 with the child’s other parent.  Parents never married.  If a child's parents have never been 
• You and the child’s other parent were married to each other but        married to each other, but lived together all year, use the return of 
  file separate returns for 2023 and you had the higher taxable          the parent with the greater taxable income. If the parents didn’t live 
  income.                                                                together all year, the rules explained earlier under Parents are 
• You were unmarried, treated as unmarried for federal income            divorced apply.
  tax purposes, or separated from the child’s other parent by a 
  divorce or separate maintenance decree. The child must have 

Jan 8, 2024                                                         Cat. No. 92918Z

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Widowed parent remarried.   If a widow or widower remarries, the          Enter “Form 8814” on the dotted line next to line 7a or line 8, 
new spouse is treated as the child's other parent. The rules              whichever applies. Complete line 7b if applicable.
explained earlier under Custodial parent remarried apply.
                                                                          Note. If you file Form 8814 with your income tax return to report 
Tax benefits you cannot take. If you elect to report your child’s         your child’s foreign financial account, you have an interest in the 
income on your return, you cannot take certain deductions that your       assets from that account and may be required to file Form 8938, 
child could take on his or her own return such as:                        Statement of Specified Foreign Financial Assets. See the Form 8938 
• Additional standard deduction of $1,850 if the child is blind,          instructions for details.
• Penalty on early withdrawal of child’s savings, and
• Itemized deductions such as the child’s charitable contributions.       Change of address.       If your child filed a return for a previous year 
                                                                          and the address shown on the last return filed is not your child’s 
Reduced deductions or credits. If you use Form 8814, your                 current address, be sure to notify the IRS, in writing, of the new 
increased adjusted gross income may reduce certain deductions or          address. To do this, use Form 8822, Change of Address.
credits on your return, including the following.
• Deduction for contributions to a traditional IRA.
• Deduction for student loan interest.                                    Specific Instructions
• Itemized deductions for medical expenses and casualty and 
  theft losses.                                                           Name and social security number (SSN).     If you are filing a joint 
• Credit for child and dependent care expenses.                           return, enter both names but enter the SSN of the person whose 
• Child tax credit.                                                       name is shown first on the return.
• Education tax credits.
• Earned income credit.                                                   Taxable and Tax-Exempt Interest
Penalty for underpayment of estimated tax.      If you make this          Line 1a. Enter all taxable interest income your child received in 
election for 2023 and didn't have enough tax withheld or pay enough       2023. Do not include tax-exempt interest in the total for line 1a, but 
estimated tax to cover the tax you owe, you may be subject to a           be sure to include it on line 1b.
penalty. If you plan to make this election for 2024, you may need to      If your child received, as a nominee, interest that actually belongs 
increase your federal income tax withholding or your estimated tax        to another person, enter the amount and “ND” (nominee distribution) 
payments to avoid the penalty. See Pub. 505 for more information.         on the dotted line next to line 1a. Do not include amounts received 
                                                                          as a nominee in the total for line 1a.
Rate may be higher.   If your child received qualified dividends or 
capital gain distributions, you may pay up to $125 more tax if you        If your child had accrued interest that was paid to the seller of a 
make this election instead of filing a separate tax return for the child. bond, amortizable bond premium (ABP) allowed as a reduction to 
This is because the tax rate on the child's income between $1,250         interest income, or if any original issue discount (OID) is less than 
and $2,500 is 10% if you make this election. However, if you file a       the amount shown on your child’s Form 1099-OID, enter the 
separate return for the child, the tax rate may be as low as 0%           nontaxable amount on the dotted line next to line 1a and “Accrued 
because of the preferential tax rates for qualified dividends and         interest,” “ABP adjustment,” or “OID adjustment,” whichever applies. 
capital gain distributions.                                               Do not include any nontaxable amounts in the total for line 1a.
  To figure the most beneficial tax on your child's income, first         Line 1b. If your child received any tax-exempt interest income, such 
figure the tax on your child’s income as if they are filing a return.     as from certain state and municipal bonds, report it on line 1b. 
Next, figure the tax as if you are electing to report your child’s income Tax-exempt interest, including any exempt-interest dividends your 
on your return. Then, compare the methods to determine which              child received as a shareholder in a mutual fund or other regulated 
results in the lower tax.                                                 investment company, should be shown in box 8 of Form 1099-INT.
Alternative minimum tax (AMT). If your child received tax-exempt          Note. If line 1b includes tax-exempt interest or exempt-interest 
interest (or exempt-interest dividends paid by a regulated investment     dividends paid by a regulated investment company from private 
company) from certain private activity bonds, you must take this into     activity bonds, see Alternative minimum tax, earlier.
account in determining if you owe the AMT. This type of interest 
should be shown in box 9 of Form 1099-INT. See Form 6251,                 Ordinary Dividends
Alternative Minimum Tax—Individuals, and its instructions for details.
                                                                          Line 2a. Enter the ordinary dividends your child received in 2023. 
Net Investment Income Tax (NIIT). For purposes of figuring any            Ordinary dividends should be shown in box 1a of Form 1099-DIV. 
NIIT liability of the parents on Form 8960, the following rules apply.    Also include ordinary dividends your child received through a 
1. All income reported on line 12 is included in the parents’             partnership, an S corporation, or an estate or trust.
  modified adjusted gross income.                                         Ordinary dividends received as nominee.    If your child received, 
2. All net investment income included on line 12 (except for Alaska       as a nominee, ordinary dividends that actually belong to another 
  Permanent Fund dividends) is included in the parents’ net               person, enter the amount and “ND” on the dotted line next to line 2a. 
  investment income.                                                      Do not include amounts received as a nominee in the total for 
                                                                          line 2a.
  For more information on NIIT, go to IRS.gov/NIIT.
Investment interest expense.  Your child’s income (other than             Qualified Dividends
qualified dividends, Alaska Permanent Fund dividends, and capital 
gain distributions) that you report on your return is considered to be    Line 2b. Enter all qualified dividends your child received in 2023. 
your investment income for purposes of figuring your investment           Qualified dividends are those dividends normally reported on Form 
interest expense deduction. If your child received qualified              1040, 1040-SR, or 1040-NR, line 3a. They are the ordinary 
dividends, Alaska Permanent Fund dividends, or capital gain               dividends that are eligible for the same lower tax rate as a net capital 
distributions, see Pub. 550, Investment Income and Expenses, to           gain. Qualified dividends should be shown in box 1b of Form 
figure the amount you can treat as your investment income.                1099-DIV. For detailed information about qualified dividends, see 
                                                                          Pub. 550.
Foreign accounts and trusts.  You must complete Schedule B                Enter the child's qualified dividends on Form 8814, line 2b. But 
(Form 1040), Part III, and file it with your tax return if your child:    don't include this amount on the parent’s Form 1040, 1040-SR, or 
1. Had a foreign financial account; or                                    1040-NR, line 3a. Instead, include the amount from Form 8814, 
                                                                          line 9, on Form 1040, 1040-SR, or 1040-NR, line 3a. (The amount on 
2. Received a distribution from, or was the grantor of, or transferor     Form 8814, line 9, may be less than the amount on Form 8814, 
  to, a foreign trust.

2                                                                                                               Instructions for Form 8814

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line 2b, because lines 7 through 12 of the form divide the $2,500        Example.     Fred is 6 years old. In 2023, he received dividend 
base amount on Form 8814, line 5, between the child's qualified          income of $2,600, which included $1,990 of ordinary dividends and 
dividends, capital gain distributions, and other interest and dividend   a $610 capital gain distribution from a mutual fund. (None of the 
income, reducing each of those amounts.)                                 distributions were reported on Form 1099-DIV as unrecaptured 
                                                                         section 1250 gain, section 1202 gain, or collectibles (28% rate) 
Note. Don't include these dividends on Form 8814, line 12; or            gain.) All of the ordinary dividends are qualified dividends. He has 
Schedule 1 (Form 1040), line 8z.                                         no other income and isn’t subject to backup withholding. No 
                                                                         estimated tax payments were made under his name and SSN.
Capital Gain Distributions                                               Fred's parents elect to include Fred's income on their tax return 
Line 3. Enter the capital gain distributions your child received in      instead of filing a return for him.
2023. Capital gain distributions should be shown in box 2a of Form       They figure the amount to report on Form 1040, lines 3a and 3b, 
1099-DIV.                                                                and the amount to report on their Schedule D, line 13, as follows.
The amount of these distributions that is added to your income           They leave lines 1a and 1b of Form 8814 blank because Fred 
must be reported on Schedule D (Form 1040), Capital Gains and            doesn’t have any interest income. They enter his ordinary dividends 
Losses, line 13, or, if you aren't required to file Schedule D, on Form  of $1,990 on lines 2a and 2b because all of Fred's ordinary 
1040, 1040-SR, or 1040-NR, line 7, whichever applies.                    dividends are qualified dividends. They enter the amount of Fred's 
This is the amount on Form 8814, line 10. (The amount on Form            capital gain distributions, $610, on line 3. Next, they add the 
8814, line 10, may be less than the amount on Form 8814, line 3,         amounts on lines 1a, 2a, and 3 and enter the result, $2,600, on 
because lines 7 through 12 of the form divide the $2,500 base            line 4.
amount on Form 8814, line 5, between the child's qualified               They subtract the base amount on line 5, $2,500, from the 
dividends, capital gain distributions, and other interest and dividend   amount on line 4, $2,600, and enter the result, $100, on line 6. This 
income, reducing each of those amounts.)                                 is the total amount from Form 8814 to be reported on their return. 
                                                                         Next, they figure how much of this amount is qualified dividends and 
Note. Don’t include these dividends on Form 8814, line 12; or            how much is capital gain distributions.
Schedule 1 (Form 1040), line 8z.                                         • They divide the amount on line 2b, $1,990, by the amount on 
Types of capital gain distributions. Capital gain distributions are        line 4, $2,600. They enter the result, 0.77, on line 7.
organized into the following three subcategories.                        • They divide the amount on line 3, $610, by the amount on line 4, 
• Collectibles (28% rate) gain distributions.                              $2,600. They enter the result, 0.23, on line 8.
• Unrecaptured section 1250 gain distributions.                          • They multiply the amount on line 6, $100, by the decimal on 
• Section 1202 gain distributions.                                         line 7, 0.77, and enter the result, $77, on line 9.
                                                                         • They multiply the amount on line 6, $100, by the decimal on 
Collectibles (28% rate) gain distributions.   If any of the child's        line 8, 0.23, and enter the result, $23, on line 10.
capital gain distributions are reported on Form 1099-DIV as              • They include the amount from line 9, $77, on lines 3a and 3b of 
collectibles (28% rate) gain, you must determine how much to also          their Form 1040 and enter “Form 8814 — $77” on the dotted 
include on line 4 of the 28% Rate Gain Worksheet in the instructions       lines next to lines 3a and 3b. They include the amount from 
for Schedule D, line 18. Multiply the child's capital gain distribution    line 10, $23, on line 13 of their Schedule D (Form 1040) and 
included on Schedule D, line 13, by a fraction. The numerator is the       enter “Form 8814 — $23” on the dotted line next to Schedule D, 
part of the child's total capital gain distribution that is collectibles   line 13.
(28% rate) gain. The denominator is the child's total capital gain 
distribution. Enter the result on line 4 of the 28% Rate Gain            Additional Instructions
Worksheet.
                                                                         Line 9. Include this amount on Form 1040, 1040-SR, or 1040-NR, 
Unrecaptured section 1250 gain distributions.     If any of the          lines 3a and 3b. Enter “Form 8814” and this amount on the dotted 
child's capital gain distributions are reported on Form 1099-DIV as      line next to those lines unless you file Schedule B (Form 1040).
unrecaptured section 1250 gain, you must determine how much to           If you file Schedule B, include this amount on line 5 and identify it 
include on line 11 of the Unrecaptured Section 1250 Gain                 as from “Form 8814.” Complete Schedule B as instructed. Also 
Worksheet in the instructions for Schedule D, line 19. Multiply the      include this amount on Form 1040, 1040-SR, or 1040-NR, line 3a.
child's capital gain distribution included on Schedule D, line 13, by a 
fraction. The numerator is the part of the child's total capital gain    You must file Schedule B if this amount plus the parents’ 
distribution that is unrecaptured section 1250 gain. The denominator     dividends is more than $1,500.
is the child's total capital gain distribution. Enter the result on the  Line 10. Include this amount on Schedule D (Form 1040), line 13; 
Unrecaptured Section 1250 Gain Worksheet, line 11.                       or Form 1040, 1040-SR, or 1040-NR, line 7. Enter “Form 8814” and 
Section 1202 gain distributions. If any of the child's capital gain      this amount on the dotted line next to line 13 of Schedule D or in the 
distributions are reported as section 1202 gain (gain on qualified       space to the left of line 7 of Form 1040, 1040-SR, or 1040-NR.
small business stock) on Form 1099-DIV, part or all of that gain may     If any of the child's capital gain distributions were reported on 
be eligible for the section 1202 exclusion. (For information about the   Form 1099-DIV as unrecaptured section 1250 gain, section 1202 
exclusion, see chapter 4 of Pub. 550.) To figure that part, multiply the gain, or collectibles (28% rate) gain, see Types of capital gain 
child's capital gain distribution included on Schedule D, line 13, by a  distributions, earlier, to locate the instructions for the type(s) of 
fraction. The numerator is the part of the child's total capital gain    capital gain distributions your child has and for details on the 
distribution that is section 1202 gain. The denominator is the child's   amount(s) to report on Schedule D.
total capital gain distribution. Your section 1202 exclusion is          Line 12. If you checked the box on line C, add the amounts from 
generally 50% of the result, but may be subject to a limit. In some      line 12 of all your Forms 8814. Include the result on Schedule 1 
cases, the exclusion is more than 50%. See the Instructions for          (Form 1040), line 8z. Enter “Form 8814” and the total of the line 12 
Schedule D for details and information on how to report the              amounts in the space on that line.
exclusion amount.)
Capital gain distributions received as nominee.    If your child         Line 15. If you checked the box on line C, add the amounts from 
received, as a nominee, capital gain distributions that actually         line 15 of all your Forms 8814. Include the total on Form 1040, 
belong to another person, enter the amount and “ND” on the dotted        1040-SR, or 1040-NR, line 16. Be sure to check box 1 on Form 
line next to line 3. Do not include amounts received as a nominee in     1040, 1040-SR, or 1040-NR, line 16.
the total for line 3.

Instructions for Form 8814                                                                                                                     3