Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Federal input screens

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

Show all hidden content

Overview

Use this screen to complete Form 8814 if the taxpayer has elected to report his or her child's income, thus eliminating the need for the child to file a return using Form 8615. This screen provides fields for up to five children, and a separate Form 8814 prints for each. If the taxpayer has more than five children, enter this information in additional units of this screen.
note
If the Filing Status Optimization utility is used for a return containing 8814 information, refer to Form 8814 instructions to determine taxpayer / spouse ownership. The Filing Status Optimization utility treats any unit of information with an
S
 entry as belonging to the spouse return when split. All other entries in the
T, S, J
 field are included in the taxpayer's return.

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

Use sections 1, 2, 3, 4, and 5 to enter income information for up to five children in each 8814 screen.
note
A child must be under age 19 or a full-time student under age 24 at the end of
2025
 to qualify for their parents to report their income on Form 8814. A child born on January 1, 1998, is considered to be age 19 at the end of
2025
.
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
2025
 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.
note
When the
Require a password to display SSNs
 box is marked in the Setup,  Security, and then  Security Configuration tab, the Social Security number will display as "###-##-####."
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.
note
Children who exceed the age requirement in the following year will not proforma.
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.
Taxable Interest:
Leave the
Type Code
 field blank for an interest item that is taxable on the federal 1040 return.
  • 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).
Municipal and Other Tax-Exempt Interest:
Enter total tax-exempt interest (including interest income attributable to private activity bonds issued after 8/7/86) in the
Tot Tax Exempt
 field in the statement. Items entered in this field transfer to Form 8814, line 1b, Tax-exempt interest. If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the
AMT Int Income (PAB)
 field in the statement. Amounts entered in this field will only be used for Form 6251, Alternative Minimum Tax, calculations and will transfer to the appropriate line of Form 6251.
  • 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.
Adjustment Amounts:
Enter code
3
,
4
,
5
, or
6
 for nominee, accrued, OID, or ABP adjustment items. If an item of interest income requires an adjustment, enter the total amount received on one line, then enter the adjustment amount on a separate line with a code of
3
,
4
,
5
, or
6
. Enter the adjustment as a positive amount when using one of these codes. For type codes
3
 through
6
, UltraTax CS calculates a subtotal for each code and subtracts the adjustment amounts on Form 8814, line 1a.
  • 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.
note
When processing a nonresident state return with a resident return, the duplicate line entry is not always necessary. Enter a single line entry for each interest item and leave the
State
 field blank if the nonresident return does not require separate information such as US Ob $ or % or In-State Muni $ or % for each state return attached. Enter duplicate lines with the applicable postal codes if the nonresident return requires US Ob $ or % or In-State Muni $ or % information.
  • Do Not Proforma:
     Enter
    X
     in this field to delete the item on next year's proforma.
Part-Year Returns:
Enter a percentage if a portion of the interest item is in-state source income. For example, enter
50.000
 in this field if the item is 50 percent in-state source income for the state indicated in the
State
 field. When this field is blank, UltraTax CS calculates part-year resident returns as if you have entered
100.000
. Enter
0.000
 in this field if none of the interest income amount is in-state source income for the state that corresponds to the entry in the
State
 field.
Nonresident Returns:
Enter a percentage if a portion of the interest item is in-state source income. Leave this field blank if none of the interest income amount is in-state source income for the state as indicated in the
State
 field.
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.
note
  • Gain on the exchange of qualified small business stock acquired after December 21, 2000, in a qualified business entity (within an empowerment zone) and held more than five years is subject to a 60 percent exclusion.
  • Gain on the exchange of qualified small business stock acquired after February 17, 2009, and on or before September 27, 2010 in a qualified business entity held more than five years is subject to a 75 percent exclusion.
  • Gain on the exchange of qualified small business stock acquired after September 27, 2010, and before January 1, 2014 in a qualified business entity held more than five years is subject to a 100 percent exclusion.
  • 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.
When processing two or more state returns, make duplicate line entries for those dividend items for which different information must be entered 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, 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.
note
When processing a nonresident state return with a resident return, the duplicate line entry is not always necessary. Enter a single line entry for each dividend item and leave the
State
 field blank if the nonresident return does not require separate information such as US Ob $ or % or In-State Muni $ or %. Enter duplicate lines with the applicable postal codes if the nonresident return requires US Ob $ or % or In-State Muni $ or % information.
  • Do Not Proforma:
     Enter
    X
     in this field to delete the item on next year's proforma.
Part-year returns:
Enter a percentage if a portion of the dividend item is in-state source income. For example, enter
50.000
 in this field if the item is 50 percent in-state source income for the state as indicated in the
State
 field. When this field is blank, UltraTax CS calculates part-year resident returns as if you have entered
100.000
. Enter
0.000
 in this field if none of the dividend income is in-state source income for the state that corresponds to the entry in the
State
 field.
Nonresident Returns:
Enter a percentage if a portion of the dividend item is in-state source income. Leave this field blank if none of the dividend income is in-state source income for the state indicated in the
State
 field.
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.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close