N-814: Parent’s Election to Report Child’s Interest and Dividends (2024)

Who files this form

Form N-814 is an optional election for a parent to report a child’s interest and dividends on the parent’s Hawaii return. If you make this election, your child does not have to file a separate return.

For tax year 2024, your child must meet all of these conditions:

• Was under age 14 at the end of 2024. A child born on January 1, 2011, is considered age 14 at the end of 2024.
• Had income only from interest and dividends, including capital gain distributions and Alaska Permanent Fund dividends.
• Had gross income of more than $500 but less than $5,000.
• Is required to file a 2024 return.
• Had no estimated tax payments for 2024, including a 2023 overpayment applied to 2024 estimated tax.
• Had no federal income tax withheld from the child’s income as backup withholding.

You must also file Form N-11 or N-15 and qualify under the parent rules:

• If filing jointly with the child’s other parent for 2024, you qualify.
• If married to the child’s other parent but filing separately for 2024, you must have the higher taxable income.
• If unmarried, treated as unmarried for tax purposes, or separated by a divorce or separate maintenance decree, the child must have lived with you for most of the year. If you remarried, you may make the election on a joint return with your new spouse. If you file separately from your new spouse, you must have the higher taxable income.
• If you and the child’s other parent were unmarried but lived together with the child during the year, only the parent with the higher taxable income qualifies.

References to marriage and spouses also apply to civil unions and civil union partners.

What you'll need

Have the following information and forms available:

• Your Hawaii Form N-11 or N-15, with your name and Social Security number. If filing jointly, enter both names on N-814 and the Social Security number of the person listed first on the return. If you are an alien with an IRS-issued ITIN, enter that ITIN.
• Your child’s full name and Social Security number.
• Your child’s federal Forms 1099-INT and 1099-OID, if applicable, for interest information.
• Your child’s federal Form 1099-DIV, if applicable. Ordinary dividends should appear in box 1a and capital gain distributions in box 2a.
• Information about other dividends, including those received through a partnership, S corporation, estate or trust, and any Alaska Permanent Fund dividends.
• Details of any nominee income that belongs to someone else, tax-exempt income, or interest adjustments described in the instructions.

Complete a separate Form N-814 for each child whose income you elect to report.

How to file

Complete Form N-814 and attach it to your Form N-11 or N-15. File your return by its due date, including extensions. The supplied text does not give a mailing address or e-filing directions.

1. Enter the parent’s and child’s identifying information. Check box C if attaching more than one Form N-814.
2. Use Part I to figure the child’s income to report on your return. If line 4 is $1,000 or less, skip lines 5 through 9 and go to line 10. If line 4 is $5,000 or more, do not file N-814; your child must file a separate return.
3. Report line 8 on Form N-11, line 10, if not already included on line 7, or on line 9 of the Capital Gain/Loss Worksheet in the Form N-15 instructions.
4. Report line 9 on Form N-11, line 10, if not already included on line 7, or on Form N-15, line 19. Next to N-15, line 19, write “Form N-814” and the amount.
5. Use Part II to figure the additional tax. Include line 12 in Form N-11, line 27, or Form N-15, line 44, and indicate that tax from Form N-814 is included.

If filing multiple Forms N-814, combine their line 9 amounts for reporting on your return. Also combine their line 12 amounts for reporting the additional tax.

Common mistakes

• Assuming the election always lowers tax. The form cautions that filing a separate return for your child may result in less tax. This election prevents you from taking certain deductions the child could claim separately, such as the $500 standard deduction, an early-withdrawal penalty on savings, and certain itemized deductions. If these apply, compare both methods.
• Putting tax-exempt interest on line 1a. Report it on line 1b instead.
• Including nominee income in the line totals. Interest, ordinary dividends or capital gain distributions that belong to another person should not be included in lines 1a, 2 or 3. Write the amount and “ND” on the dotted line next to the applicable line.
• Including exempt dividends or capital gain distributions. Do not include amounts exempt under section 235-9.5, HRS, on lines 2 or 3.
• Leaving out the tax notation. Indicate that tax from Form N-814 is included on Form N-11, line 27, or Form N-15, line 44.

Questions people ask

Can I use one Form N-814 for all my children?

No. Complete a separate form for each child whose income you choose to report. Check box C if attaching more than one Form N-814.

Does my child still need to file a return if I make this election?

No. If you and your child qualify and you make the election, your child does not have to file a separate return.

How is the tax in Part II calculated?

Subtract the $500 amount not taxed from line 4. Enter zero on line 11 if the result is zero or less. If line 11 is less than $500, multiply it by 2%. Otherwise, enter $10 on line 12.

Where can I get Hawaii tax forms?

Forms, instructions and schedules are available at taxation district offices and at tax.hawaii.gov. You can also contact a customer service representative at 808-587-4242 or toll-free at 1-800-222-3229.

Official sources

• https://files.hawaii.gov/tax/forms/2024/n814_i.pdf