Form 8814 - Parents' Election To Report Child'S Interest And Dividends - 2014 Page 3
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Form 8814 (2014)
Page
General Instructions
If your child received qualified dividends or capital gain
distributions, you may pay up to $100 more tax if you make this
Future Developments
election instead of filing a separate tax return for the child. This is
because the tax rate on the child’s income between $1,000 and
For the latest information about developments related to Form 8814
$2,000 is 10% if you make this election. However, if you file a
and its instructions, such as legislation enacted after they were
separate return for the child, the tax rate may be as low as 0% (zero
published, go to
percent) because of the preferential tax rates for qualified dividends
and capital gain distributions.
Purpose of Form
If any of the above apply to your child, first figure the tax on your
Use this form if you elect to report your child’s income on your
child’s income as if he or she is filing a return. Next, figure the tax as
return. If you do, your child will not have to file a return. You can
if you are electing to report your child’s income on your return.
make this election if your child meets all of the following conditions.
Then, compare the methods to determine which results in the lower
• The child was under age 19 (or under age 24 if a full-time student)
tax.
at the end of 2014. “Student” is defined below.
Alternative minimum tax. If your child received tax-exempt interest
• The child’s only income was from interest and dividends, including
(or exempt-interest dividends paid by a regulated investment
capital gain distributions and Alaska Permanent Fund dividends.
company) from certain private activity bonds, you must take this
into account in determining if you owe the alternative minimum tax.
• The child’s gross income for 2014 was less than $10,000.
This type of interest should be shown in box 9 of Form 1099-INT.
• The child is required to file a 2014 return.
See Form 6251, Alternative Minimum Tax—Individuals, and its
• The child does not file a joint return for 2014.
instructions for details.
• There were no estimated tax payments for the child for 2014
Net Investment Income Tax. For purposes of figuring any Net
(including any overpayment of tax from his or her 2013 return
Investment Income Tax liability of the parents on Form 8960, the
applied to 2014 estimated tax).
following rules apply.
• There was no federal income tax withheld from the child’s
1. All income reported on line 12 is included in the parents'
income.
modified adjusted gross income, and
You must also qualify. See Parents who qualify to make the
2. All net investment income included on line 12 (except for
election below.
Alaska Permanent Fund dividends) is included in the parents' net
Student. A student is a child who for some part of each of 5
investment income.
calendar months during the year was enrolled as a full-time student
For more information on Net Investment Income Tax, go to
at a school, or took a full-time, on-farm training course given by a
and enter “Net Investment Income Tax” in the search
school or a state, county, or local government agency. A school
box.
includes a technical, trade, or mechanical school. It does not
Investment interest expense. Your child’s income (other than
include an on-the-job training course, correspondence school, or
qualified dividends, Alaska Permanent Fund dividends, and capital
school offering courses only through the Internet.
gain distributions) that you report on your return is considered to be
Certain January 1 birthdays. A child born on January 1, 1996, is
your investment income for purposes of figuring your investment
considered to be age 19 at the end of 2014. You cannot make this
interest expense deduction. If your child received qualified
election for such a child unless the child was a full-time student.
dividends, Alaska Permanent Fund dividends, or capital gain
A child born on January 1, 1991, is considered to be age 24 at the
distributions, see Pub. 550, Investment Income and Expenses, to
end of 2014. You cannot make this election for such a child.
figure the amount you can treat as your investment income.
How to make the election. To make the election, complete and
Foreign accounts and trusts. You must complete Schedule B
attach Form(s) 8814 to your tax return and file your return by the
(Form 1040), Part III, and file it with your tax return if your child:
due date (including extensions). A separate Form 8814 must be filed
1. Had a foreign financial account, or
for each child whose income you choose to report.
2. Received a distribution from, or was the grantor of, or
Parents who qualify to make the election. You qualify to make
transferor to, a foreign trust.
this election if you file Form 1040 or Form 1040NR and any of the
following apply.
Enter “Form 8814” on the dotted line next to line 7a or line 8,
whichever applies. Complete line 7b if applicable.
• You are filing a joint return for 2014 with the child’s other parent.
Note. If you file Form 8814 with your income tax return to report
• You and the child’s other parent were married to each other but
your child's foreign financial account, you have an interest in the
file separate returns for 2014 and you had the higher taxable
assets from that account and may be required to file Form 8938,
income.
Statement of Specified Foreign Financial Assets. Check
• You were unmarried, treated as unmarried for federal income tax
/form8938 for details.
purposes, or separated from the child’s other parent by a divorce or
Change of address. If your child filed a return for a previous year
separate maintenance decree. The child must have lived with you
and the address shown on the last return filed is not your child’s
for most of the year (you were the custodial parent). If you were the
current address, be sure to notify the IRS, in writing, of the new
custodial parent and you remarried, you can make the election on a
address. To do this, use Form 8822, Change of Address.
joint return with your new spouse. But if you and your new spouse
do not file a joint return, you qualify to make the election only if you
Additional information. See Pub. 929, Tax Rules for Children and
had higher taxable income than your new spouse.
Dependents, for more details.
Note. If you and the child’s other parent were not married but lived
Line 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.
Name and social security number. If you are filing a joint return,
Tax benefits you cannot take. If you elect to report your child’s
enter both names but enter the social security number of the person
income on your return, you cannot take certain deductions that your
whose name is shown first on the return.
child could take on his or her own return such as:
Line 1a. Enter all taxable interest income your child received in
• Additional standard deduction of $1,550 if the child is blind,
2014. Do not include tax-exempt interest in the total for line 1a, but
be sure to include it on line 1b.
• Penalty on early withdrawal of child’s savings, and
• Itemized deductions such as the child’s investment expenses or
charitable contributions.
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