This chapter discusses two special tax rules that apply to certain investment income of a child under age 14.
- If the childs interest, dividends, and other investment income total more than $1,400, part of that income may be taxed at the parents tax rate instead of the childs tax rate. (See Tax for Children Under Age 14 Who Have Investment Income of More Than $1,400, later.)
- The childs parent may be able to choose to include the childs interest and dividend income (including capital gain distributions) on the parents return rather than file a return for the child. (See Parents Election To Report Childs Interest and Dividends, later.)
For these rules, the term "child" includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent.
These rules do not apply if:
- The child is not required to file a tax return, or
- Neither of the childs parents were living at the end of the tax year.
Publication
- 929 - Tax Rules for Children and Dependents
Form (and Instructions)
- 8615 - Tax for Children Under Age 14 Who Have Investment Income of More Than $1,400
- 8814 - Parents Election To Report Childs Interest and Dividends
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