If your child only received investment income, you may be able to report that income on your own tax return instead of filing a separate tax return for your child. This election is made using Form 8814, Parents' Election to Report Child's Interest and Dividends.
Choosing this option can simplify filing, but it may not always result in the lowest tax. In some cases, your child's income could be taxed at your tax rate.
Who Qualifies for This Election?
You can elect to report your child's interest and dividend income on your return if all of the following conditions apply:
- Your child was under age 19 at the end of 2026 (or under age 24 and a full-time student).
- Your child's only income was from:
- Interest
- Dividends
- Capital gain distributions
- Alaska Permanent Fund dividends
- Your child's gross income for 2026 was less than $13,500.
- Your child would otherwise be required to file a tax return if you do not make this election.
- Your child does not file a joint return for 2026.
- No estimated tax payments were made for your child during 2026, including any 2025 overpayment applied to 2026 estimated taxes.
- No federal income tax was withheld from your child's investment income.
Which Parent Should Report the Income?
If you and your child's other parent are married and file a joint return, use that joint return to report the child's income.
If the parents do not file a joint return, IRS rules determine which parent can make the election. Generally, eligibility depends on filing status and, in some cases, which parent has the higher taxable income. Review the IRS rules for parents who do not file jointly before making the election.
Do I Qualify to Make the Election?
You may make this election if you file Form 1040, Form 1040-SR, or another eligible return and one of the following applies:
- You are filing a joint return with your child's other parent.
- You and the child's other parent are married but filing separate returns, and you have the higher taxable income.
- You are unmarried, considered unmarried for federal tax purposes, divorced, or legally separated from the child's other parent.
What Form Do I Need?
To report your child's interest and dividend income on your return, complete Form 8814, Parents' Election to Report Child's Interest and Dividends and attach it to your tax return.
How to Enter It in Tax Software
Go to:
Other Taxes → Parents' Election to Report Child's Interest and Dividends (Form 8814)
Enter your child's investment income as prompted, and the program will complete Form 8814 if you qualify.
Before You Decide
While reporting your child's income on your return may eliminate the need for a separate return, it isn't always the most tax-efficient option. Depending on the amount of income and your tax bracket, filing a separate return for your child may produce a better result.
Consider reviewing both options if your child has significant investment income.
Additional Information
For complete rules and examples, see: