Common questions about Form 8615 and Form 8814 in ProSeries

Below are answers to frequently asked questions about using Form 8615 and 8814 in ProSeries Basic and ProSeries Professional.

Form 8615, Tax for Certain Children Who Have Unearned Income

When using Form 8615 in ProSeries, you should enter the child as the Taxpayer on the Federal Information Worksheet.

Who should file Form 8615?

Form 8615 must be filed for any child who meets all of the following conditions:

1. The child had more than $2,200 of unearned income.
2. The child is required to file a tax return.
3. The child either:
   1. Was under age 18 at the end of 2023,
   2. Was age 18 at the end of 2023 and did not have earned income that was more than half of the child's support, or
   3. Was at least 19 and under age 24 at the end of 2023, a full-time student, and didn't have earned income that was more than half of the child's support.
4. At least one of the child's parents was alive at the end of 2023.
5. The child doesn't file a joint return for 2023.

What is considered earned income?

Earned income includes wages, tips, and other payments received for personal services performed. Refer to the Instructions for Form 8615 for more information about what qualifies as earned income.

Form 8814, Parent's Election to Report Child's Interest and Dividends

When using Form 8814, you should enter the child as a Dependent on the Federal Information Worksheet.

Who should file Form 8814?

If the client elects to report their child's income on their return,  the child won't have to file a return. The client can make this election if their child meets all of the following conditions:

• The child was under age 19 (or under age 24 if a full-time student) at the end of 2023.
• The child is required to file a tax return.
• The child doesn't file a joint return.
• The child's only income was from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.
• The child's gross income for 2023 was less than $11,000.
• There were no estimated tax payments for the child in 2023 (including any overpayment of tax from his or her 2022 return applied to 2023 estimated tax).
• There was no federal income tax withheld from the child's income.

How does this election affect the client's tax benefits?

If the client elects to report their child's income on their return, they can't take certain deductions that the child could take on their own return, such as:

• Additional standard deduction of $1,650 if the child is blind
• Penalty on early withdrawal of child’s savings
• Itemized deductions such as the child’s charitable contributions

Refer to the instructions on Form 8814 for more information.