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                                                                                                                                                                                        Clear Form

FORM 
                                 
N-814                                Parent’s Election to Report Child’s                                                                                                                       
(REV. 2023)                                         Interest and Dividends 
                                                                                                                                                                                        2023

                                                      See Instructions below and on back.
                                                     Attach to Parent’s Form N-11 or Form N-15 
                                    (NOTE: References to “married” and “spouse” are also references to  
N814_I 2023A 01 VID01                       “in a civil union” and “civil union partner,” respectively.)

Name(s) as shown on parent’s return                                                                                                       Your social security number

A  Child’s name (first, initial, and last)                                                                                                B  Child’s social security number

C  If more than one Form N-814 is attached, check here  ......................................................................................................................................  
                                                                                                                                                                                               
 Part I    Child’s Interest and Dividends To Report on Your Return

 1 a  Enter your child’s taxable interest.  If this amount is different from the amounts shown on the child’s  
      federal 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
 2    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  ......................................                                           2
 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, 2, and 3. If the total is $1,000 or less, skip lines 5 through 9 and go to line 10.  If the  
      total is $5,000 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  1,000  00
  6    Line 4 minus line 5. ........................................................................................................................................................ 6 
      If line 3 is zero or blank, skip line 7, enter -0- on line 8, and go to line 9. Otherwise, go to line 7.
 7      Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places) ..                       7
 8      Multiply line 6 by line 7. Enter the result here. See the Instructions for where to  
      report this amount on your return .................................................................................  8
 9      Line 6 minus line 8. Include this amount in the total on Form N-11, line 10 (if not already included on Form N-11,  
      line 7), or on Form N-15, line 19. In the space next to Form N-15, line 19, write “Form N-814” and show the  
      amount. If you checked the box on line C above, see the Instructions. Go to line 10 below. ........................................                                            9

 Part II   Tax on the First $1,000 of Child’s Interest and Dividends

 10     Amount not taxed...........................................................................................................................................................  10 500  00
  11    Line 4 minus line 10. If the result is zero or less, enter zero .........................................................................................                    11
 12   Tax.   Is the amount on line 11 less than $500? 
           No. Enter $10.00 here and see the Note below.                                                                         ........................                            12
           Yes. Multiply line 11 by 2% (.02). 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 12 in the tax you enter on Form N-11, line 
27, or Form N-15, line 44.  Be sure to indicate that a tax from Form N-814 is included on Form N-11, line 27, or Form N-15, line 44.

                                                     Purpose of Form.—Use this form if you are a                             • The child’s gross income for 2023 was more 
General Instructions                                 parent and elect to report your child’s income on                         than $500 but less than $5,000.
Note: The federal provisions in the: (1) Tax         your return under section 235-7.5, Hawaii Revised 
Increase Prevention and Reconciliation  Act of       Statutes (HRS). If you do, your child will not have                     • The child is required to file a 2023 return.
2005, (2) Small Business and Work Opportunity        to file a return. You can make this election if your                      There were no estimated tax payments for the 
Tax Act of 2007, (3) Tax Cuts and Jobs Act of 2017,  child meets all of the following conditions:                            • 
                                                                                                                               child for 2023 (including any overpayment of 
and (4) Further Consolidated Appropriations Act        The child was under age 14 at the end of 2023.                          tax from his or her 2022 return applied to 2023 
of 2020 relating to minor children whose unearned    •                                                                         estimated tax).
                                                       A child born on January 1, 2010 is considered 
income is taxed as if it were their parent’s income    to be age 14 at the end of 2023.                                        There was no federal income tax withheld from 
have  not  been  adopted  for  Hawaii  income  tax                                                                           • 
purposes at the present time.                        • The child’s only income was from interest and                           the child’s income (backup withholding).
                                                       dividends,  including  capital  gain  distributions                     You  must  also  qualify  as  explained  in  these 
                                                       and Alaska Permanent Fund dividends.                                  instructions.
                                                                                                                                          FORM N-814 (REV. 2023)
                                                       ID NO 01

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FORM N-814 (REV. 2023) Page 2

Part I is used to figure the amount of your report on your return is considered to be your dotted line next to line 1a, and write “Accrued
child’s income to report on your return. Part II investment income for purposes of figuring your interest,” “ABP adjustment,” or “OID adjustment,”
is used to figure any additional tax that must be investment interest expense deduction. If your whichever applies. Do not include any nontaxable
added to your tax. child received Alaska Permanent Fund dividends amounts in the total for line 1a.
or capital gain distributions, see federal Publication
How To Make the Election.—To make the 550, Investment Income and Expenses, to figure Line 1b. If your child received any tax-exempt
election, complete and attach Form(s) N-814 to the amount you can treat as your investment interest income, such as interest on certain state
your tax return and file your return by the due date income. and municipal bonds, enter the total tax-exempt
(including extensions). A separate Form N-814 interest on line 1b. Tax-exempt interest, including
must be filed for each child whose income you Additional Information.—For more information, any exempt-interest dividends your child received
choose to report. see the instructions for federal Form 8814, as a shareholder in a mutual fund or other
Parents’ Election To Report Child’s Interest and regulated investment company, should be shown
Caution: The income tax on your child’s income Dividends. in box 8 of federal Form 1099-INT.
may be less if you file a separate tax return for
the child instead of making this election. This is How To Obtain Tax Forms. —Hawaii tax forms, Line 2. Enter the ordinary dividends your child
because you cannot take certain deductions that instructions, and schedules may be obtained at any received in 2023. Ordinary dividends should be
your child could take on his or her own return. For taxation district office or from the Department of shown in box 1a of federal Form 1099-DIV. Also,
details, see Deductions You Cannot Take below. Taxation’s website at tax.hawaii.gov, or you may include ordinary dividends your child received
contact a customer service representative at: 808- through a partnership, an S corporation, or an
Parents Who Qualify To Make the Election.— 587-4242 or 1-800-222-3229 (Toll-Free). estate or trust.
You qualify to make this election if you file Form
N-11 or N-15 and any of the following apply: Note: Do not include on line 2 any ordinary
Line-by-Line Instructions dividends that are exempt from Hawaii income
• You are filing a joint return for 2023 with the taxes pursuant to section 235-9.5, HRS.
child’s other parent. Note: Section 235-9.5, HRS, provides that all
income earned and proceeds derived from stock If your child received, as a
• You and the child’s other parent were married options or stock, including stock issued through nominee, ordinary
dividends that actually belong to another
to each other but file separate returns for 2023 the exercise of stock options or warrants, from person, write the amount and “ND” (for nominee
and you had the higher taxable income. a qualified high technology business or from a distribution) on the dotted line next to line 2. Do
holding company of a qualified high technology
• You were unmarried, treated as unmarried for business by an employee, officer, or director of not include amounts received as a nominee in the
total for line 2.
income tax purposes, or separated from the the qualified high technology business, or investor
child’s other parent by a divorce or separate who qualifies for the high technology business Line 3. Enter the capital gain distributions your
maintenance decree. The child must have investment tax credit is excluded from income child received in 2023. Capital gain distributions
lived with you for most of the year (you were taxes. Also, section 235-7.3, HRS, provides that should be shown in box 2a of federal Form 1099-
the custodial parent). If you were the custodial amounts received by an individual or a qualified DIV.
parent and you remarried, you can make the high technology business as royalties and other
election on a joint return with your new spouse income derived from patents, copyrights, and trade Note: Do not include on line 3 any capital gain
(your child’s step-parent). But if you and your secrets (1) owned by the individual or qualified distributions that are exempt from Hawaii income
new spouse do not file a joint return, you high technology business, and (2) developed and taxes pursuant to section 235-9.5, HRS.
qualify to make the election only if you had arising out of a qualified high technology business If your child received, as a nominee, capital
higher taxable income than your new spouse. are excluded from gross income, adjusted gross gain distributions that actually belong to another
Note: If you and the child’s other parent were not income, and taxable income. person, enter the amount and “ND” (for nominee
married but you lived together during the year with Parent’s Name and Social Security Number.— distribution) on the dotted line next to line 3. Do
the child, you qualify to make the election only if If you are filing a joint return, enter both names not include amounts received as a nominee in the
you are the parent with the higher taxable income. but enter the social security number of the person total for line 3.
Deductions You Cannot Take.—If you elect to whose name is shown first on the return. If you are Line 8. Include this amount on Form N-11, line 10
report your child’s income on your return, you an alien and were issued an individual taxpayer (if not already included on Form N-11, line 7), or on
cannot take certain deductions that your child identification number (ITIN) by the IRS, enter your line 9 of the Capital Gain/Loss Worksheet in the
could take on his or her own return such as: ITIN. Instructions for Form N-15.
• Standard deduction of $500. Line 1a. Enter all taxable interest income your Line 9. If you checked the box on line C, add
child received in 2023. Do not include tax-exempt the amounts from line 9 of
• Penalty on early withdrawal of child’s savings. interest in the total for line 1a, but be sure to all Forms N-814 and
include the total on Form N-11, line 10 (if not
include it on line 1b.
• Itemized deductions such as the child’s already included on Form N-11, line 7), or on Form
investment expenses or charitable If your child received, as a nominee, interest N-15, line 19. Be sure to write “Form N-814” and
contributions. that actually belongs to another person, write the the total of the line 9 amounts in the space next to
amount and “ND” (for nominee distribution) on the Form N-15, line 19.
If any of the above applies to your child, first dotted line next to line 1a. Do not include amounts Line 12. If you checked the box on line C, add
figure the tax on your child’s income as if he or received as a nominee in the total for line 1a. the amounts from line 12 of all Forms N-814 and
she is filing a return. Next, figure the tax as if
you are electing to report your child’s income on If your child had accrued interest that was paid include the total on Form N-11, line 27, or on Form
your return. Then, compare the two methods to to the seller of a bond, amortizable bond premium N-15, line 44.
determine which results in the lower tax. (ABP) allowed as a reduction to interest income, Make sure to indicate that a tax from Form
or if any original issue discount (OID) is less than N-814 is included on Form N-11, line 27, or Form
Investment Interest Expense. —Your child’s the amount shown on your child’s federal Form N-15, line 44.
income (excluding Alaska Permanent Fund 1099-OID, enter the nontaxable amount on the
dividends and capital gain distributions) that you

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