Hawaii Parent's Election to Report Child's Interest and Dividends

Parent's Election to Report Child's Interest and Dividends
Form N-814, Rev. 2022, Parent's Election to Report Child's Interest and Dividends
Clear Form
FORM

N-814

(REV. 2023)

Parent’s Election to Report Child’s
	
Interest and Dividends

2023

	

	

N814_I 2023A 01 VID01

† See Instructions below and on back.
	
† Attach to Parent’s Form N-11 or Form N-15
	 (NOTE: References to “married” and “spouse” are also references to
	
“in a civil union” and “civil union partner,” respectively.)

Name(s) as shown on parent’s return	

Your social security number

A  Child’s name (first, initial, and last)	

B  Child’s social security number

C  If more than one Form N-814 is attached, check here .......................................................................................................................................

†

Part I Child’s Interest and Dividends To Report on Your Return
	 1	a	 Enter your child’s taxable interest.  If this amount is different from the amounts shown on the child’s
federal Forms 1099-INT and 1099-OID, see the Instructions.........................................................................................	
		
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 .......................................	
	 3		 Enter your child’s capital gain distributions. If your child received any capital gain distributions as a nominee,
see the Instructions........................................................................................................................................................	
	 4		 Add lines 1a, 2, and 3. If the total is $1,000 or less, skip lines 5 through 9 and go to line 10.  If the
total is $5,000 or more, do not file this form.  Your child must file his or her own return to report the income .............	
	 5		Base amount .................................................................................................................................................................	
	6		 Line 4 minus line 5..........................................................................................................................................................	
If line 3 is zero or blank, skip line 7, enter -0- on line 8, and go to line 9. Otherwise, go to line 7.

1a

2
3
4
5	
6

1,000  00

	 7		 Divide line 3 by line 4. Enter the result as a decimal (rounded to at least three places)...	 7
	 8		 Multiply line 6 by line 7. Enter the result here. See the Instructions for where to
report this amount on your return.................................................................................. 	 8
	 9		 Line 6 minus line 8. Include this amount in the total on Form N-11, line 10 (if not already included on Form N-11,
line 7), or on Form N-15, line 19. In the space next to Form N-15, line 19, write “Form N-814” and show the
amount. If you checked the box on line C above, see the Instructions. Go to line 10 below..........................................	 9

Part II Tax on the First $1,000 of Child’s Interest and Dividends
	 10		 Amount not taxed...........................................................................................................................................................	 10	
	11		 Line 4 minus line 10. If the result is zero or less, enter zero .........................................................................................	 11
	 12		Tax.		 Is the amount on line 11 less than $500?
No. Enter $10.00 here and see the Note below.	
  .........................	 12
					 Yes. Multiply line 11 by 2% (.02). Enter the result here and see the Note below.

500  00

}

Note: If you checked the box on line C above, see the Instructions. Otherwise, include the amount from line 12 in the tax you enter on Form N-11, line
27, or Form N-15, line 44. Be sure to indicate that a tax from Form N-814 is included on Form N-11, line 27, or Form N-15, line 44.

General Instructions
Note: The federal provisions in the: (1) Tax
Increase Prevention and Reconciliation Act of
2005, (2) Small Business and Work Opportunity
Tax Act of 2007, (3) Tax Cuts and Jobs Act of 2017,
and (4) Further Consolidated Appropriations Act
of 2020 relating to minor children whose unearned
income is taxed as if it were their parent’s income
have not been adopted for Hawaii income tax
purposes at the present time.

Purpose of Form.—Use this form if you are a
parent and elect to report your child’s income on
your return under section 235-7.5, Hawaii Revised
Statutes (HRS). If you do, your child will not have
to file a return. You can make this election if your
child meets all of the following conditions:

•	

The child was under age 14 at the end of 2023.
A child born on January 1, 2010 is considered
to be age 14 at the end of 2023.

•	

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 more
than $500 but less than $5,000.

•	
•	

The child is required to file a 2023 return.

•	

There was no federal income tax withheld from
the child’s income (backup withholding).

There were no estimated tax payments for the
child for 2023 (including any overpayment of
tax from his or her 2022 return applied to 2023
estimated tax).

You must also qualify as explained in these
instructions.

		
FORM N-814 (REV. 2023)

ID NO 01

FORM N-814 (REV. 2023)		
Part I is used to figure the amount of your
child’s income to report on your return. Part II
is used to figure any additional tax that must be
added to your tax.
How To Make the Election.—To make the
election, complete and attach Form(s) N-814 to
your tax return and file your return by the due date
(including extensions). A separate Form N-814
must be filed for each child whose income you
choose to report.
Caution: The income tax on your child’s income
may be less if you file a separate tax return for
the child instead of making this election. This is
because you cannot take certain deductions that
your child could take on his or her own return. For
details, see Deductions You Cannot Take below.
Parents Who Qualify To Make the Election.—
You qualify to make this election if you file Form
N-11 or N-15 and any of the following apply:

•	

You are filing a joint return for 2023 with the
child’s other parent.

•	

You and the child’s other parent were married
to each other but file separate returns for 2023
and you had the higher taxable income.

•	

You were unmarried, treated as unmarried for
income tax purposes, or separated from the
child’s other parent by a divorce or separate
maintenance decree. The child must have
lived with you for most of the year (you were
the custodial parent). If you were the custodial
parent and you remarried, you can make the
election on a joint return with your new spouse
(your child’s step-parent). But if you and your
new spouse do not file a joint return, you
qualify to make the election only if you had
higher taxable income than your new spouse.

Note: If you and the child’s other parent were not
married but you lived together during the year with
the child, you qualify to make the election only if
you are the parent with the higher taxable income.
Deductions You Cannot Take.—If you elect to
report your child’s income on your return, you
cannot take certain deductions that your child
could take on his or her own return such as:

•	
•	
•	

Standard deduction of $500.
Penalty on early withdrawal of child’s savings.
Itemized deductions such as the child’s
investment
expenses
or
charitable
contributions.

If any of the above applies to your child, first
figure the tax on your child’s income as if he or
she is filing a return. Next, figure the tax as if
you are electing to report your child’s income on
your return. Then, compare the two methods to
determine which results in the lower tax.
Investment Interest Expense. —Your child’s
income (excluding Alaska Permanent Fund
dividends and capital gain distributions) that you

report on your return is considered to be your
investment income for purposes of figuring your
investment interest expense deduction. If your
child received Alaska Permanent Fund dividends
or capital gain distributions, see federal Publication
550, Investment Income and Expenses, to figure
the amount you can treat as your investment
income.

Page 2
dotted line next to line 1a, and write “Accrued
interest,” “ABP adjustment,” or “OID adjustment,”
whichever applies. Do not include any nontaxable
amounts in the total for line 1a.

Additional Information.—For more information,
see the instructions for federal Form 8814,
Parents’ Election To Report Child’s Interest and
Dividends.

Line 1b. If your child received any tax-exempt
interest income, such as interest on certain state
and municipal bonds, enter the total tax-exempt
interest on line 1b. Tax-exempt interest, including
any exempt-interest dividends your child received
as a shareholder in a mutual fund or other
regulated investment company, should be shown
in box 8 of federal Form 1099-INT.

How To Obtain Tax Forms. —Hawaii tax forms,
instructions, and schedules may be obtained at any
taxation district office or from the Department of
Taxation’s website at tax.hawaii.gov, or you may
contact a customer service representative at: 808587-4242 or 1-800-222-3229 (Toll-Free).

Line 2. Enter the ordinary dividends your child
received in 2023. Ordinary dividends should be
shown in box 1a of federal Form 1099-DIV. Also,
include ordinary dividends your child received
through a partnership, an S corporation, or an
estate or trust.

Line-by-Line Instructions

Note: Do not include on line 2 any ordinary
dividends that are exempt from Hawaii income
taxes pursuant to section 235-9.5, HRS.

Note: Section 235-9.5, HRS, provides that all
income earned and proceeds derived from stock
options or stock, including stock issued through
the exercise of stock options or warrants, from
a qualified high technology business or from a
holding company of a qualified high technology
business by an employee, officer, or director of
the qualified high technology business, or investor
who qualifies for the high technology business
investment tax credit is excluded from income
taxes. Also, section 235-7.3, HRS, provides that
amounts received by an individual or a qualified
high technology business as royalties and other
income derived from patents, copyrights, and trade
secrets (1) owned by the individual or qualified
high technology business, and (2) developed and
arising out of a qualified high technology business
are excluded from gross income, adjusted gross
income, and taxable income.
Parent’s Name and Social Security Number.—
If you are filing a joint return, enter both names
but enter the social security number of the person
whose name is shown first on the return. If you are
an alien and were issued an individual taxpayer
identification number (ITIN) by the IRS, enter your
ITIN.
Line 1a. Enter all taxable interest income your
child received in 2023. Do not include tax-exempt
interest in the total for line 1a, but be sure to
include it on line 1b.
If your child received, as a nominee, interest
that actually belongs to another person, write the
amount and “ND” (for nominee distribution) on the
dotted line next to line 1a. Do not include amounts
received as a nominee in the total for line 1a.
If your child had accrued interest that was paid
to the seller of a bond, amortizable bond premium
(ABP) allowed as a reduction to interest income,
or if any original issue discount (OID) is less than
the amount shown on your child’s federal Form
1099-OID, enter the nontaxable amount on the

If your child received, as a nominee, ordinary
dividends that actually belong to another
person, write the amount and “ND” (for nominee
distribution) on the dotted line next to line 2. Do
not include amounts received as a nominee in the
total for line 2.
Line 3. Enter the capital gain distributions your
child received in 2023. Capital gain distributions
should be shown in box 2a of federal Form 1099DIV.
Note: Do not include on line 3 any capital gain
distributions that are exempt from Hawaii income
taxes pursuant to section 235-9.5, HRS.
If your child received, as a nominee, capital
gain distributions that actually belong to another
person, enter the amount and “ND” (for nominee
distribution) on the dotted line next to line 3. Do
not include amounts received as a nominee in the
total for line 3.
Line 8. Include this amount on Form N-11, line 10
(if not already included on Form N-11, line 7), or on
line 9 of the Capital Gain/Loss Worksheet in the
Instructions for Form N-15.
Line 9. If you checked the box on line C, add
the amounts from line 9 of all Forms N-814 and
include the total on Form N-11, line 10 (if not
already included on Form N-11, line 7), or on Form
N-15, line 19. Be sure to write “Form N-814” and
the total of the line 9 amounts in the space next to
Form N-15, line 19.
Line 12. If you checked the box on line C, add
the amounts from line 12 of all Forms N-814 and
include the total on Form N-11, line 27, or on Form
N-15, line 44.
Make sure to indicate that a tax from Form
N-814 is included on Form N-11, line 27, or Form
N-15, line 44.