Screen 8814 - Parent's Election to Report Child's Interest and Dividends (1040)

Overview

Form 8814 - Parent's Election to Report Child's Income

Child's social security number

Select the Social Security number of the appropriate child from the fieldview, if applicable. Any dependent entered in the 1040 screen that is under the age of 19 or a full-time student under age 24 at the end of

2024

is available in the fieldview. If Form 8814 is being filed for a non-dependent, enter the child's Social Security number in this field.

Child's date of birth

If Form 8814 is being filed for a dependent entered in the 1040 screen, the child's date of birth is automatically filled out based on the Social Security number selected. If Form 8814 is being filed for a non-dependent, enter the child's date of birth in this field.

Child's name

If Form 8814 is being filed for a dependent entered in the 1040 screen, the child's name is automatically filled out based on the Social Security number selected. If Form 8814 is being filed for a non-dependent, enter the name of the child in this field. This field is mandatory.

Interest income

If no special types of interest income exist, enter the amount in the 8814 screen and not in the attached statement. Otherwise, use the attached statement to classify the interest income using the available codes. UltraTax CS treats any amount entered in the input screen as fully taxable. The information that follows describes how information entered in the attached statement affects the calculation of the client's federal and state tax returns.

F/S:
Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the
F/S
field, enter
S
for all but one of your duplicate line entries. The federal application disregards entries coded
S
.
Type Code:
Enter a code to identify interest income that is an adjustment to an interest amount (such as nominee or accrued interest). The type code applies only to amounts entered in the
Interest Income
field.

State processing:
For interest items with the
Type Code
field blank, enter an amount or percentage in the
US Ob $ or %
field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to the state).

State processing:
Enter an amount or percentage in the
In-State Muni $ or %
field to indicate the portion of the amount entered in the
Tot Tax Exempt
field, if any, that is nontaxable to the integrated state.

Payer:
Enter the payer name. A custom fieldview is available for this field.
Interest Income:
Enter taxable interest income amounts and adjustments to interest amounts reported on Forms 1099-INT or 1099-OID. Do not enter tax-exempt interest in this field.
Tot Tax Exempt:
Enter total tax-exempt interest amounts (including interest income attributable to private activity bonds issued after 8/7/86). This amount may be reported on Form 1099-INT, box 8. Do not enter tax-exempt interest in the
Interest Income
field.
AMT Int Income (PAB):
Enter interest income attributable to private activity bonds issued after 8/7/86. This amount may be reported on Form 1099-INT, box 9. Amounts entered in this field will be used for Form 6251 calculations. You must also enter the amount in the
Tot Tax Exempt
field for Form 8814 purposes.
US Ob $ or %:
For state processing, enter a percentage in this field if any portion of the taxable interest income is attributable to U.S. government obligations (nontaxable to the state). For example, enter
12.500
in this field if the item is 12.50 percent U.S. government interest. Note that the
US Ob $ or %
field is applicable only for interest items entered in the
Interest Income
field. UltraTax CS disregards a US Ob $ or % entry for items entered in the
Tot Tax Exempt
and
AMT Int Inc (PAB)
fields.
In-State Muni $ or %:
For state processing, enter a percentage in this field to indicate the portion of the municipal or other tax-exempt interest income (items entered in the
Tax Exempt Amount
field) that is nontaxable to the integrated state. For example, enter
8.000
in this field if the item is 8.0 percent attributable to municipal obligations of the integrated state; enter
50
in this field if $50 of the tax exempt interest is attributable to municipal obligations of the integrated state. Note that the
In-State Muni $ or %
field is applicable only for interest entered in the
Tot Tax Exempt
field. UltraTax CS disregards an In-State Muni % entry for items entered in the
Interest Income
and
AMT Int Inc (PAB)
fields.
In-State Source %:
This field is applicable only to part-year resident and nonresident state returns.
In-State Source %
defaults to 100 percent for part-year state returns if the part-year state is entered in the
State
field. However,
In-State Source %
defaults to zero percent for all nonresident state returns and part-year resident state returns if the
State
field is blank or does not match the part-year resident state being processed.
State:
Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank
State
field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year and/or nonresident integrated state returns.
When processing two or more state returns, make duplicate line entries for those interest items where you must enter different information for each state. For example, a different US Ob $ or %, In-State Muni $ or %, or In-State Source % may be required for each state. Enter a postal code to direct each line entry to a particular state return. When duplicate line entries are used, remember to enter
S
in the
F/S
field for all but one of your duplicate entries, so that the federal application disregards the "state only" entries.

Do Not Proforma:
Enter
X
in this field to delete the item on next year's proforma.

Dividend income

If no special types of dividend income exist, enter the amount in the 8814 screen and not in the attached statement. Otherwise, use the attached statement to classify the dividend income using the following codes. The information that follows describes how information entered in the attached statement affects the calculation of the client's federal and state tax returns.

F/S:
Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In the
F/S
field, enter
S
for all but one of the duplicate line entries. The federal application disregards entries coded
S
.
Type Code:
Enter a code to indicate that the income item is a nominee adjustment amount.

Taxable Dividends:

Leave the

Type Code

field blank for a dividend item that is taxable on the federal 1040 return.

State processing:
For dividend items with the
Type Code
field blank, enter a percentage in the
US Ob $ or %
field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to the state).

Municipal and Other Tax-Exempt Dividends:

Enter total tax-exempt dividends (including dividend income attributable to private activity bonds issued after 8/7/86) in the

Tax Exempt Amount

field in the statement. Items entered in this field transfer to Form 8814, line 1b, Tax-exempt interest. If a portion of the income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the

AMT Exempt Div (PAB)

field in the statement. Amounts entered in these fields are used for Form 6251, Alternative Minimum Tax, calculations.

State processing:
Enter a percentage in the
In-State Muni $ or %
field to indicate the portion of the amount entered in the
Tax Exempt Amount
field, if any, that is nontaxable to the state.

Nominee Amounts:

If an item of dividend income requires a nominee adjustment, enter the total amount received on one line, then enter the nominee amount on a separate line with type code

3

. Enter the nominee adjustment as a positive amount. UltraTax CS calculates a subtotal of items with type code

3

and makes a marginal entry reporting these amounts on Form 8814, line 2a. Dividends reported on Form 8814, line 2a are the net of these adjustments.

Payer:
Enter the payer name. A custom fieldview is available for this field.
Ordinary Dividend:
Enter ordinary dividend amounts from Form 1099-DIV. Do not enter tax-exempt dividends in this field.
Qualified Dividend:
Enter qualified dividend amounts from Form 1099-DIV. Do not enter tax-exempt dividends in this field.
Total Cap Gain:
Enter total capital gain distribution amounts from Form 1099-DIV or a supporting document.
Sec 1250:
Enter section 1250 capital gain distribution amounts from Form 1099-DIV or a supporting document.
Sec 1202:
Part or all of the section 1202 gain entered in this field may be eligible for an exclusion from income. The taxpayer must have held an interest in the RIC/REIT that sold the qualified small business stock (QSB) on the date the QSB was acquired and continuously until the stock was sold.
1202 Excl Code:
If the taxpayer qualifies for the exclusion, enter the code that represents the appropriate exclusion or use the fieldview to make your selection.

28% Cap Gain:
Enter 28-percent capital gain distribution amounts from Form 1099-DIV or a supporting document.
Tax Exempt Amount:
Enter total tax-exempt dividend amounts (including dividend income attributable to private activity bonds issued after 8/7/86). This amount may be reported on Form 1099-DIV, box 10. Do not enter tax-exempt dividends in the
Ordinary Dividend
or
Qualified Dividend
fields.
AMT Exempt Div (PAB):
Enter dividend income attributable to private activity bonds issued after 8/7/86. This amount may be reported on Form 1099-DIV, box 11. Amounts entered in this field will be used only for Form 6251 calculations. You must also enter the amount in the
Tax Exempt Amount
field for Form 8814 purposes.
US Ob $ or %:
For state processing, enter a percentage in this field if any portion of the dividend income is attributable to U.S. government obligations (nontaxable to the state). For example, enter
12.5000
in this field if the item is 12.50 percent attributable to U.S. government obligations; enter
25
in this field if $25 of interest is U.S. government interest. Note that the
US Ob $ or %
field is applicable only for dividend items entered in the
Ordinary Div
field. UltraTax CS disregards a US Ob $ or % entry for items entered in the
Tax Exempt Amount
and
AMT Exempt Div (PAB)
fields.
In-State Muni $ or %:
For state processing, enter a percentage in this field to indicate the portion of the municipal or other tax-exempt dividend income (items entered in the
Tax Exempt Amount
field) that is nontaxable to the integrated state. For example, enter
8.000
in this field if the item is 8.0 percent attributable to municipal obligations of the integrated state; enter
50
in this field if $50 of the tax exempt interest is attributable to municipal obligations of the integrated state. Note that the
In-State Muni $ or %
field is applicable only for dividend items entered in the
Tax Exempt Amount
field. UltraTax CS disregards an In-State Muni $ or % entry for items entered in the
Ordinary Dividend
and
AMT Exempt Div (PAB)
fields.
In-State Source %:
This field is applicable only to part-year resident and nonresident state returns.
In-State Source %
defaults to 100 percent for part-year resident state returns if the part-year resident state is entered in the
State
field. However,
In-State Source %
defaults to zero percent for all nonresident state returns and part-year resident state returns if the
State
field is blank or does not match the part-year resident state being processed.
State:
Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank
State
field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.

Do Not Proforma:
Enter
X
in this field to delete the item on next year's proforma.

Alaska Permanent Fund dividends

Enter Alaska Permanent Fund dividends received by the child either directly in the 8814 screen or by using the attached statement. UltraTax CS includes amounts entered here in line 2a of Form 8814. The fields within the statement affect how the client's federal and state tax returns calculate.

Description:
Use this field to enter a description of the Alaska Permanent Fund dividends received by the child.
Amount:
Use this field to enter the amount of Alaska Permanent Fund dividends received by the child.
State:
Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank
State
field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.