Parents may elect to include their child's income from interest, dividends, and capital gains with their tax return as long as the total taxable interest, dividends, and capital gains are less than the gross income limitation for the tax year. Once the total reaches tax year's gross income limit, the child must file their own return.
Both the parents and the child need to meet certain qualifications in order for the parents to make the election. See the Form 8814 instructions for details on the qualifications and the gross income limit.
To include the child's income in the parent's return in TaxSlayer Pro, from the Main Menu of the tax return (Form 1040) select:
- Tax Computation
- Child's Interest and Dividends (8814) - Select New, then select the child.
- Enter the child's taxable interest, dividends, and capital gains in the menu lines provided.
To help the taxpayer-parent understand the impact of including Form 8814 in their return, they should review the information in the Form 8814 instructions.
Reminder: Form 8814 must be completed for each child being included in the Parents' Tax Return.
Additional Information:
IRS: Instructions for Form 8814, Parents’ Election To Report Child’s Interest and Dividends