Forms 8615 or 8814 – Children Investment Income aka Kiddie Tax
Income earned from assets held in a UGMA or UTMA account is generally considered the child’s unearned income for federal tax purposes, even if the assets were gifted by a parent, grandparent, or another person. If your child has interest, dividends, or other unearned income, you must decide whether to file Form 8814, Parents’ Election To Report Child’s Interest and Dividends, with the parents’ return or Form 8615, Tax for Certain Children Who Have Unearned Income, with the child’s return. A Form 1099-B Proceeds From Broker and Barter Exchange Transactions or 1099-DIV Dividends and Distributions may be received from the financial institution handling the UGMA/UTMA account to report any interest or earnings on the account.
See the Instructions for Form 8814 and Instructions for Form 8615 for more information about each form. Follow the steps below to enter the appropriate information in the TaxAct program:
Form 8814
Online
Dashboard
- From within your TaxAct return, click Taxes & Miscellaneous.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click the Other Tax Forms drop-down.
- Click Add beside Child’s Interest & Dividends.
- Complete the rest of the interview process.
Classic
- From within your TaxAct return, click Federal.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click the Taxes drop-down, then click Child’s interest and dividend income on your return.
- Complete the rest of the interview process.
Desktop
- From within your TaxAct return, click Federal.
- Click the Taxes drop-down, then click Child’s interest and dividend income on your return.
- Complete the rest of the interview process.
Form 8615
Online
Dashboard
- From within your child’s TaxAct return, click Taxes & Miscellaneous.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click the Additional Tax Payments drop-down.
- Click Add beside Child’s Unearned Income Tax.
- Complete the rest of the interview process.
Classic
- From within your child’s TaxAct return, click Federal.
- On smaller devices, click the menu at the top left corner of your screen, then make your selection.
- Click the Taxes drop-down, then click Tax on child’s unearned income.
- Complete the rest of the interview process.
Desktop
- From within your child’s TaxAct return, click Federal.
- Click the Taxes drop-down, then click Tax on child’s unearned income.
- Complete the rest of the interview process.