U.S. Individual Income Tax Return Forms

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2025

Instructions for Form 8814
Parents’ Election To Report Child’s Interest and Dividends
Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to Form
8814 and its instructions, such as legislation enacted after they
were published, go to IRS.gov/Form8814.

General Instructions
Use this form if you elect to report your child’s income on your
return. If you do, your child will not have to file a return. You can
make this election if your child meets all of the following
conditions.
• The child was under age 19 (or under age 24 if a full-time
student) at the end of 2025. Full-time student is defined
below.
• The child’s only income was from interest and dividends,
including 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.
• There were no estimated tax payments for the child for 2025
(including any overpayment of tax from his or her 2024
return applied to 2025 estimated tax).
• There was no federal income tax withheld from the child’s
income.
You must also qualify. See Parents who qualify to make the
election, below.
Note: The amounts at $1,350 and below are not taxed when
using this election. See Rate may be higher for more information.
Full-time student. A full-time student is your child who for
some part of each of 5 calendar months during the year was
enrolled as a full-time student at a school, or took a full-time
on-farm training course given by a school or a state, county, or
local government agency. A school includes a technical, trade, or
mechanical school. It does not include an on-the-job training
course, correspondence school, or school offering courses only
through the Internet.
Certain January 1 birthdays. A child born on January 1, 2007,
is considered to be age 19 at the end of 2025. You cannot make
this election for such a child unless the child was a full-time
student.
A child born on January 1, 2002, is considered to be age 24
at the end of 2025. You cannot make this election for such a
child.
How to make the election. To make the election, complete
and attach Form(s) 8814 to your tax return and file your return by
the due date (including extensions). A separate Form 8814 must
be filed for each child whose income you choose to report on
your return. You can make the election for one or more children
and not for others.

Oct 8, 2025

See Which Parent's Return To Use below for more information
about which parent’s return to use.
Note: If you and the child’s other parent were not married but
lived together during the year with the child, you qualify to make
the election only if you are the parent with the higher taxable
income.

Which Parent’s Return To Use

If a child’s parents are married to each other and file a joint
return, use the joint return when electing to report the child’s
interest and dividend income on their return. For other situations
when the parents do not file a joint return, see Parents Who
Don't File a Joint Return, next.

Parents Who Don’t File a Joint Return
For parents who don’t file a joint return and are electing to report
the child’s interest and dividend income on their return, the
following discussions explain which parent’s tax return must be
used to figure the tax.
Only the parent whose tax return is used can make the
election described earlier under Parents who qualify to make the
election.
Parents are married. If the child’s parents file separate returns,
use the return of the parent with the greater taxable income.
Parents not living together. If the child’s parents are
married to each other but not living together, and the parent with
whom the child lives (the custodial parent) is considered
unmarried, use the return of the custodial parent. If the custodial
parent isn’t considered unmarried, use the return of the parent
with the greater taxable income.
For an explanation of when a married person living apart from
his or her spouse is considered unmarried, see Head of
Household in Pub. 501.
Parents are divorced. If the child’s parents are divorced or
legally separated, and the parent who had custody of the child
for the greater part of the year (the custodial parent) hasn’t
remarried, use the return of the custodial parent.

Instructions for Form 8814 (2025) Catalog Number 92918Z
Department of the Treasury Internal Revenue Service www.irs.gov

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Purpose of Form

Parents who qualify to make the election. You qualify to
make this election if you file Form 1040, 1040-SR, or 1040-NR
and any of the following apply.
• You are filing a joint return for 2025 with the child’s other
parent.
• You and the child’s other parent were married to each other
but file separate returns for 2025 and you had the higher
taxable income.
• You were unmarried, treated as unmarried for federal
income tax purposes, or separated from the child’s other
parent by a divorce or separate maintenance decree. The
child must have lived with you for most of the year (you were
the custodial 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 qualify to make the election only if you
had higher taxable income than your new spouse.

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Custodial parent remarried. If the custodial parent has
remarried, the stepparent (rather than the noncustodial parent) is
treated as the child’s other parent. Therefore, if the custodial
parent and the stepparent file a joint return, use that joint return.
Don’t use the return of the noncustodial parent.
If the custodial parent and the stepparent are married, but file
separate returns, use the return of the one with the greater
taxable income. If the custodial parent and the stepparent are
married but not living together, the earlier discussion under
Parents not living together applies.
Parents never married. If a child’s parents have never been
married to each other, but lived together all year, use the return
of the parent with the greater taxable income. If the parents
didn’t live together all year, the rules explained earlier under
Parents are divorced apply.

Tax benefits you cannot take. If you elect to report your child’s
income on your return, you cannot take certain deductions that
your child could take on his or her own return such as:
• Additional standard deduction of $2,000 if the child is blind,
• Penalty on early withdrawal of child’s savings, and
• Itemized deductions such as the child’s charitable
contributions.
Reduced deductions or credits. If you use Form 8814, your
increased adjusted gross income may reduce certain deductions
or credits on your return, including the following.
• Deduction for contributions to a traditional IRA.
• Deduction for student loan interest.
• Deduction for qualified tips.
• Deduction for qualified overtime compensation.
• Deduction for seniors.
• Deduction for qualified passenger vehicle loan interest.
• Itemized deductions for medical expenses, state and local
taxes, and casualty and theft losses.
• Credit for child and dependent care expenses.
• Child tax credit.
• Education tax credits.
• Earned income credit.
Penalty for underpayment of estimated tax. If you make this
election for 2025 and didn’t have enough tax withheld or pay
enough estimated tax to cover the tax you owe, you may be
subject to a penalty. If you plan to make this election for 2026,
you may need to increase your federal income tax withholding or
your estimated tax payments to avoid the penalty. See Pub. 505,
Tax Withholding and Estimated Tax, for more information.
Rate may be higher. If your child received qualified dividends
or capital gain distributions, you may pay up to $135 more tax if
you make this election instead of filing a separate tax return for
the child. This is because the tax rate on the child’s income
between $1,350 and $2,700 is 10% if you make this election.
However, if you file a separate return for the child, the tax rate
may be as low as 0% because of the preferential tax rates for
qualified dividends and capital gain distributions.
To figure the most beneficial tax on your child’s income, first
figure the tax on your child’s income as if they are filing a return.
Next, figure the tax as if you are electing to report your child’s
income on your return. Then, compare the methods to determine
which results in the lower tax.
Alternative minimum tax (AMT). If your child received
tax-exempt interest (or exempt-interest dividends paid by a
regulated investment company) from certain private activity
bonds, you must take this into account in determining if you owe
the AMT. This type of interest should be shown in box 9 of Form
2

Net Investment Income Tax (NIIT). For purposes of figuring
any NIIT liability of the parents on Form 8960, the following rules
apply.
1. All income reported on line 12 is included in the parents’
modified adjusted gross income.
2. All net investment income included on line 12 (except for
Alaska Permanent Fund dividends) is included in the
parents’ net investment income.
For more information on NIIT, go to IRS.gov/NIIT.
Investment interest expense. Your child’s income (other than
qualified dividends, Alaska Permanent Fund dividends, and
capital gain distributions) that you report on your return is
considered to be your investment income for purposes of figuring
your investment interest expense deduction. If your child
received qualified dividends, Alaska Permanent Fund dividends,
or capital gain distributions, see Pub. 550, Investment Income
and Expenses, to figure the amount you can treat as your
investment income.
Foreign accounts and trusts. You must complete Schedule B
(Form 1040), Part III, and file it with your tax return if your child:
1. Had a foreign financial account; or
2. Received a distribution from, or was the grantor of, or
transferor to, a foreign trust.
Enter “Form 8814” on the dotted line next to line 7a or line 8,
whichever applies. Complete line 7b if applicable.
Note: If you file Form 8814 with your income tax return to report
your child’s foreign financial account, you have an interest in the
assets from that account and may be required to file Form 8938,
Statement of Specified Foreign Financial Assets. See the Form
8938 instructions for details.
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 current address, be sure to notify the IRS, in writing, of the
new address. To do this, use Form 8822, Change of Address.

Specific Instructions
Name and social security number (SSN). If you are filing a
joint return, enter both names but enter the SSN of the person
whose name is shown first on the return.

Taxable and Tax-Exempt Interest
Line 1a. Enter all taxable interest income your child received in
2025. Do not include tax-exempt interest in the total for line 1a,
but be sure to include it on line 1b.
If your child received, as a nominee, interest that actually
belongs to another person, enter the amount and “ND” (nominee
distribution) on the dotted line next to line 1a. Do not include
amounts received as a nominee in the total for line 1a.
If your child had accrued interest that was paid to the seller of
a bond, amortizable bond premium (ABP) allowed as a reduction
to interest income, or if any original issue discount (OID) is less
than the amount shown on your child’s Form 1099-OID, enter the
nontaxable amount on the dotted line next to line 1a and
“Accrued interest,” “ABP adjustment,” or “OID adjustment,”
whichever applies. Do not include any nontaxable amounts in the
total for line 1a.
Line 1b. If your child received any tax-exempt interest income,
such as from certain state and municipal bonds, report it on
line 1b. Tax-exempt interest, including any exempt-interest
Instructions for Form 8814

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Surviving parent remarried. If a surviving parent remarries,
the new spouse is treated as the child’s other parent. The rules
explained earlier under Custodial parent remarried apply.

1099-INT. See Form 6251, Alternative Minimum
Tax—Individuals, and its instructions for details.

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dividends your child received as a shareholder in a mutual fund
or other regulated investment company, should be shown in
box 8 of Form 1099-INT.
Note: If line 1b includes tax-exempt interest or exempt-interest
dividends paid by a regulated investment company from private
activity bonds, see Alternative minimum tax, earlier.

Ordinary Dividends
Line 2a. Enter the ordinary dividends your child received in
2025. Ordinary dividends should be shown in box 1a of Form
1099-DIV. Also include ordinary dividends your child received
through a partnership, an S corporation, or an estate or trust.
Ordinary dividends received as nominee. If your child
received, as a nominee, ordinary dividends that actually belong
to another person, enter the amount and “ND” on the dotted line
next to line 2a. Do not include amounts received as a nominee in
the total for line 2a.

Line 2b. Enter all qualified dividends your child received in
2025. Qualified dividends are those dividends normally reported
on Form 1040, 1040-SR, or 1040-NR, line 3a. They are the
ordinary dividends that are eligible for the same lower tax rate as
a net capital gain. Qualified dividends should be shown in box 1b
of Form 1099-DIV. For detailed information about qualified
dividends, see Pub. 550.
Enter the child’s qualified dividends on Form 8814, line 2b.
But don’t include this amount on the parent’s Form 1040,
1040-SR, 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 Form 8814, line 9, may be less than the amount
on Form 8814, line 2b, because lines 7 through 12 of the form
divide the $2,700 base amount on Form 8814, line 5, between
the child’s qualified dividends, capital gain distributions, and
other interest and dividend income, reducing each of those
amounts.)
Note: Don‘t include these dividends on Form 8814, line 12; or
Schedule 1 (Form 1040), line 8z.

Capital Gain Distributions
Line 3. Enter the capital gain distributions your child received in
2025. Capital gain distributions should be shown in box 2a of
Form 1099-DIV.
The amount of these distributions that is added to your
income must be reported on Schedule D (Form 1040), Capital
Gains and Losses, line 13, or, if you aren’t required to file
Schedule D, on Form 1040, 1040-SR, or 1040-NR, line 7a,
whichever applies.
This is the amount on Form 8814, line 10. (The amount on
Form 8814, line 10, may be less than the amount on Form 8814,
line 3, because lines 7 through 12 of the form divide the $2,700
base amount on Form 8814, line 5, between the child’s qualified
dividends, capital gain distributions, and other interest and
dividend income, reducing each of those amounts.)
Note: Don’t include these dividends on Form 8814, line 12; or
Schedule 1 (Form 1040), line 8z.
Types of capital gain distributions. Capital gain distributions
are organized into the following three subcategories.
• Collectibles (28% rate) gain distributions.
• Unrecaptured section 1250 gain distributions.
• Section 1202 gain distributions.
Collectibles (28% rate) gain distributions. If any of the
child’s capital gain distributions are reported on Form 1099-DIV
Instructions for Form 8814

Unrecaptured section 1250 gain distributions. If any of the
child’s capital gain distributions are reported on Form 1099-DIV
as unrecaptured section 1250 gain, you must determine how
much to include on line 11 of the Unrecaptured Section 1250
Gain Worksheet in the instructions for Schedule D, line 19.
Multiply the 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 distribution that is unrecaptured
section 1250 gain. The denominator is the child’s total capital
gain distribution. Enter the result on the Unrecaptured Section
1250 Gain Worksheet, line 11.
Section 1202 gain distributions. If any of the child’s capital
gain distributions are reported as section 1202 gain (gain on
qualified small business stock) on Form 1099-DIV, part or all of
that gain may be eligible for the section 1202 exclusion. (For
information about the exclusion, see chapter 4 of Pub. 550.) To
figure that part, multiply the 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 distribution that is section
1202 gain. The denominator is the child’s total capital gain
distribution. Your section 1202 exclusion is generally 50% of the
result, but may be subject to a limit. In some cases, the exclusion
is more than 50%. See the Instructions for Schedule D for details
and information on how to report the exclusion amount.)
Capital gain distributions received as nominee. If your
child received, as a nominee, capital gain distributions that
actually belong to another person, enter the amount and “ND” on
the dotted line next to line 3. Do not include amounts received as
a nominee in the total for line 3.
Example. Fred is 6 years old. In 2025, he received dividend
income of $2,800, which included $2,190 of ordinary dividends
and a $610 capital gain distribution from a mutual fund. (None of
the distributions were reported on Form 1099-DIV as
unrecaptured section 1250 gain, section 1202 gain, or
collectibles (28% rate) gain.) All of the ordinary dividends are
qualified dividends. He has no other income and isn’t subject to
backup withholding. No estimated tax payments were made
under his name and SSN.
Fred’s parents elect to include Fred’s income on their tax
return instead of filing a return for him.
They figure the amount to report on Form 1040, lines 3a and
3b, and the amount to report on their Schedule D, line 13, as
follows.
They leave lines 1a and 1b of Form 8814 blank because Fred
doesn’t have any interest income. They enter his ordinary
dividends of $2,190 on lines 2a and 2b because all of Fred’s
ordinary dividends are qualified dividends. They enter the
amount of Fred’s capital gain distributions, $610, on line 3. Next,
they add the amounts on lines 1a, 2a, and 3 and enter the result,
$2,800, on line 4.
They subtract the base amount on line 5, $2,700, from the
amount on line 4, $2,800, and enter the result, $100, on line 6.
This 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 how much is capital gain distributions.
• They divide the amount on line 2b, $2,190, by the amount on
line 4, $2,800. They enter the result, 0.78, on line 7.
• They divide the amount on line 3, $610, by the amount on
line 4, $2,800. They enter the result, 0.22, on line 8.
3

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Qualified Dividends

as collectibles (28% rate) gain, you must determine how much to
also include on line 4 of the 28% Rate Gain Worksheet in the
instructions for Schedule D, line 18. Multiply the 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
distribution that is collectibles (28% rate) gain. The denominator
is the child’s total capital gain distribution. Enter the result on
line 4 of the 28% Rate Gain Worksheet.

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• They multiply the amount on line 6, $100, by the decimal on
•
•

line 7, 0.78, and enter the result, $78, on line 9.
They multiply the amount on line 6, $100, by the decimal on
line 8, 0.22, and enter the result, $22, on line 10.
They include the amount from line 9, $78, on lines 3a and 3b
of their Form 1040 and enter “Form 8814 — $78” on the
dotted lines next to lines 3a and 3b. They include the
amount from line 10, $22, on line 13 of their Schedule D
(Form 1040) and enter “Form 8814 — $22” on the dotted
line next to Schedule D, line 13.

Additional Instructions

Line 12. If you checked the box on line C, add the amounts from
line 12 of all your Forms 8814. Include the result on Schedule 1
(Form 1040), line 8z. Enter “Form 8814” and the total of the
line 12 amounts in the space on that line.
Line 15. If you checked the box on line C, add the amounts from
line 15 of all your Forms 8814. Include the total on Form 1040,
1040-SR, or 1040-NR, line 16. Be sure to check box 1 on Form
1040, 1040-SR, or 1040-NR, line 16.

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Line 9. Include this amount on Form 1040, 1040-SR, or
1040-NR, lines 3a and 3b. Enter “Form 8814” and this amount on
the dotted line next to those lines unless you file Schedule B
(Form 1040).
If you file Schedule B, include this amount on line 5 and
identify it as from “Form 8814.” Complete Schedule B as
instructed. Also include this amount on Form 1040, 1040-SR, or
1040-NR, line 3a.
You must file Schedule B if this amount plus the parents’
dividends is more than $1,500.

Line 10. Include this amount on Schedule D (Form 1040),
line 13; or Form 1040, 1040-SR, or 1040-NR, line 7a. Enter
“Form 8814” and this amount on the dotted line next to line 13 of
Schedule D or in the space to the left of line 7a of Form 1040,
1040-SR, or 1040-NR. Check the box on line 7b, “Schedule D
not required”, if applicable.
If any of the child’s capital gain distributions were reported on
Form 1099-DIV as unrecaptured section 1250 gain, section 1202
gain, or collectibles (28% rate) gain, see Types of capital gain
distributions, earlier, to locate the instructions for the type(s) of
capital gain distributions your child has and for details on the
amount(s) to report on Schedule D.

4

Instructions for Form 8814