If your child meets all of the following conditions, you can claim your child's interest or dividends on your return:
- The child was under age 19 (or under 24 if a full-time student) at the end of 2024.
- The child's only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.
- Their gross income for 2024 was less than $13,000.
- The child is required to file a return unless you make this election to include their interest/dividends.
- The child does not file a joint tax return for 2024.
- There were no estimated tax payments for the child for 2024 (including any overpayment of tax from his or her 2023 return applied to 2024 estimated tax).
- There was no federal income tax withheld from their income.
Which Parent's Return should be used?
Per the IRS, "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."
Do I qualify to make this election?
Keep in mind that you as a parent must also qualify to make this election. You qualify for this election if you file Form 1040, Form 1040-SR and any of the following apply to you:
- You are filing a joint return for 2024 with child's other parent
- You and the child's other parent were married to each other but file separate returns for 2024 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.
Review the Instructions for Form 8814, and see Publication 929 for more information regarding this subject.