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2023 4 Satisfied (50 Votes)
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2021 4.9 Satisfied (37 Votes)
2020 4.3 Satisfied (193 Votes)
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2018 4.3 Satisfied (60 Votes)
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Purpose of Form For children under age 18 and certain older children described below in Who Must File, unearned income over $2,300 is taxed at the parents rate if the parents rate is higher than the childs. If the childs unearned income is more than $2,300, use Form 8615 to figure the childs tax.
Capital Gain Distributions 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 arent required to file Schedule D, on Form 1040, 1040-SR, or 1040-NR, line 7, whichever applies. This is the amount on Form 8814, line 10.
About Form 8814, Parents Election to Report Childs Interest and Dividends | Internal Revenue Service.
For tax year 2023, the threshold amount was increased to $2,500. This means that if a child has investment income greater than or equal to $2,500, they will be required to file their own tax return. However, parents have the option to include the childs investment income on their own tax return by filing Form 8814.