N-814: Parent’s Election to Report Child’s Interest and Dividends (2025)

Who files this form

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

For tax year 2025, your child must meet all these conditions:

• Was under age 14 at the end of 2025. A child born on January 1, 2012, is considered age 14 at the end of 2025.
• 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 2025 return.
• Had no estimated tax payments for 2025, including any 2024 overpayment applied to 2025 estimated tax.
• Had no federal income tax withheld from their income as backup withholding.

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

• If filing jointly with the child’s other parent for 2025, you qualify.
• If married to the other parent but filing separately for 2025, 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 elect on a joint return with your new spouse. If filing separately from your new spouse, you must have the higher taxable income.
• If you and the 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 include civil unions and civil union partners.

What you'll need

Have these forms and details available to complete Form N-814:

• Your Hawaii Form N-11 or N-15.
• The parent’s name and Social Security number, plus the child’s full name and Social Security number. On a joint return, enter both parents’ names but use the Social Security number of the person listed first. If you are an alien with an IRS-issued ITIN, enter your ITIN.
• The child’s federal Forms 1099-INT and 1099-OID for interest, if applicable.
• The child’s federal Form 1099-DIV for ordinary dividends and capital gain distributions, if applicable.
• Details of any dividends received through a partnership, S corporation, estate, or trust, and any Alaska Permanent Fund dividends.
• Details of tax-exempt interest, amounts received for someone else as a nominee, and any interest adjustments.

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

• Complete Part I to figure the child’s income to report on your return.
• Complete Part II to figure the additional tax to add to your tax.
• 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.
• Report line 9 on Form N-11, line 10, if not already included on line 7, or Form N-15, line 19. Next to Form N-15, line 19, write “Form N-814” and the amount.
• Include line 12 tax on Form N-11, line 27, or Form N-15, line 44, and indicate that tax from Form N-814 is included.

The supplied text does not provide a mailing address or e-file instructions.

Common mistakes

• Assuming the election always saves tax. The form cautions that a separate return for the child may result in less tax because some deductions are unavailable with this election.
• Including tax-exempt interest on line 1a. Report it on line 1b instead.
• Including nominee income in the line totals. For interest, ordinary dividends, or capital gain distributions that belong to another person, write the amount and “ND” beside the applicable line and leave it out of that line’s total.
• Including exempt dividends or capital gain distributions. Do not include amounts exempt under section 235-9.5, HRS, on lines 2 or 3.
• Using the form when line 4 is $5,000 or more. The form says not to file N-814 in that case. Your child must file their own return to report the income.
• Forgetting to identify the added tax. Indicate that Form N-814 tax 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 several children?

No. Complete a separate form for each child. If attaching more than one, check box C. Add the line 9 amounts from all forms for reporting on your return, and separately add all line 12 tax amounts.

Which deductions are unavailable if I make this election?

You cannot take certain deductions the child could take on their own return, such as the $500 standard deduction, a penalty on early withdrawal of the child’s savings, or itemized deductions such as the child’s investment expenses or charitable contributions. If these apply, the instructions say to compare the tax under both methods.

How is the tax in Part II calculated?

Subtract the $500 amount not taxed from line 4. Enter zero if the result is zero or less. If the resulting line 11 amount 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 may 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/current/n814_i.pdf