x Return To Use?

endent* children must pay Federal

hey receive the Alaska Permanent

 (APFD). It can be difficult for

rmine how to file the required tax

r children.

Alaskan children under age 14 who

PFD in 2002 must pay a tax on a

r unearned income at their parents’

ned income includes the APFD,

vidends.

tion covers the basic requirements

to other helpful publications.

hild Is Under Age 14

ry 1, 2003:

, 

“Parents’ Election To Report

rest and Dividends.

”

dren meeting the conditions listed

t to report their child’s interest and

uding the APFD) on the parents’

ng Form 8814. If the parents make

heir child will not have to file a

2. The parents can make this election

hild meets all of the following

 only from interest, dividends, or

ncome for 2002 that was less than

mated tax payments for 2002

ny overpayment of tax from his or

turn applied to 2002 estimated tax).

eral income tax withheld from his or

 of Form 8814 for a child who

he APFD is on the back. If the

o report their child’s unearned income

 Form 1040, Form 8814 must be

Form 8615, 

“Tax for Children Under

Age 14 Who Have Investment Incomeof More Than $1,400.

”

If your child received the APFD in 2002 and you donot or cannot elect to report his or her unearnedincome on your return, your child must file a Form1040 or 1040A, and a Form 8615 must becompleted and attached to the return. Form 1040EZor TeleFile cannot be used.If Your Child Is Age 14 or Olderon January 1, 2003,and received the APFD, your child must file Form1040, 1040A, 1040EZ, or TeleFile. Report theAPFD on line 21 of Form 1040, line 13 of Form1040A, line 3 of Form 1040EZ, or line D ofTeleFile. A Form 8615 is not required.Did Your Child HaveBackup Withholding?If part of your child’s APFD was withheld becauseof a missing or incorrect social security number, besure to claim credit for that amount on the child’stax return (line 62 of Form 1040, line 39 of Form1040A, or line 7 of Form 1040EZ).Additional Information

Publication 929, Tax Rules for Children and

Dependents, contains detailed information on Forms8814 and 8615. It also contains information onwhich parent’s tax rate to use when the parents areseparated or divorced. To get Publication 929 and/orForms 8814 and 8615, visit your local IRS office orcall 1-800-TAX-FORM (1-800-829-3676) to requestthat these items be mailed to you. You may alsodownload these items from the IRS Web Site at

www.irs.gov. For more help, call the IRS at

1-800-829-1040.

ed Public Assistance, these rules may

your child. For details, call the IRS

-1040 or visit your local IRS office.

prepared and attached. A separate Form 8814 isrequired for each child.
EXAMPLE

venue Service

6th Avenue

 AK 99508

PRSRT STD

Postage & Fees Paid

Internal Revenue Service

Permit No. G-48

Alaskan Parent xxx xx xxx

Alaskan Child

1,540 

40 

790 

75 

xxx xx xxx

1,540 

OMB No. 1545-

Parents’ Election To Report

Child’s Interest and Dividends Form 8814

 See instructions below and on back. Department of the Treasury

Internal Revenue Service

Attachment

 Attach to parents’ Form 1040 or Form 1040NR. Sequence No. 

Name(s) shown on your return Your social security num

Child’s name (first, initial, and last) Child’s social security n

If more than one Form 8814 is attached, check here 

Child’s Interest and Dividends To Report on Your Return

Enter your child’s taxable interest. If this amount is different from the amounts shown on the

child’s Forms 1099-INT and 1099-OID, see the instructions

1a

1a

b Enter your child’s tax-exempt interest. Do not include this

amount on line 1a 1b

2 Enter your child’s ordinary dividends, including any Alaska Permanent Fund dividends. If your

child received any ordinary dividends as a nominee, see the instructions

Enter your child’s capital gain distributions. If your child received any capital gain distributions

as a nominee, see the instructions

Add lines 1a, 2, and 3. If the total is $1,500 or less, skip lines 5 and 6 and go to line 7. If the

total is $7,500 or more, do not file this form. Your child must file his or her own return to report

the income

3

1,500 

4

Base amount

4

5

Subtract line 5 from line 4. If you checked the box on line C above or if you entered an amount

on line 3, see the instructions. Also, include this amount in the total on Form 1040, line 21, or

Form 1040NR, line 21. In the space next to line 21, enter “Form 8814” and show the amount.

Go to line 7 below  6

Tax on the First $1,500 of Child’s Interest and Dividends

Amount not taxed 750 

9

7 7

Subtract line 7 from line 4. If the result is zero or less, enter -0-

No. Enter $75 here and see the Note below.

Tax. Is the amount on line 8 less than $750?

8 8

Yes. Multiply line 8 by 10% (.10). Enter the result here and see the Note below.

Note: If you checked the box on line C above, see the instructions. Otherwise, include the amount from line 9 in the tax you 

on Form 1040, line 42, or Form 1040NR, line 40. Be sure to check box a on Form 1040, line 42, or Form 1040NR, line 40.



A B

C

(99)

3

6

2

5

Part I

Part II

9

Caution: The Federal income tax on your child’s income, including capital gain distributions, may be less if you file a separa

return for the child instead of making this election. This is because you cannot take certain tax benefits that your child could 

on his or her own return. For details, see Tax Benefits You May Not Take on the back.

*

*

*



2002