Publication 929 - Tax Rules For Children And Dependents

OMB No. 1545-0074

8814

Parents’ Election To Report

2006

Form

Child’s Interest and Dividends

See instructions.

Attachment

Department of the Treasury

Attach to parents’ Form 1040 or Form 1040NR.

Sequence No.

Internal Revenue Service

Name(s) shown on your return

Your social security number

Linda Parks

1 1 1

0 0

1 1 1 1

Caution. The federal income tax on your child’s income, including qualified dividends and capital gain distributions, 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 tax benefits

that your child could take on his or her own return. For details, see Tax benefits you cannot take on page 2.

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

Child’s social security number

Phillip Parks

0 0 0

0 0

0 0 0 0

If more than one Form 8814 is attached, check here

Child’s Interest and Dividends To Report on Your Return

Part I

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

1,650

child’s 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

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

1,150

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

b Enter your child’s qualified dividends included on line 2a. See the

1,150

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, 2a, and 3. If the total is $1,700 or less, skip lines 5 through 12 and go to line 13.

If the total is $8,500 or more, do not file this form. Your child must file his or her own return

2,800

to report the income

1,700

Base amount

1,100

Subtract line 5 from line 4

If both lines 2b and 3 are zero or blank, skip lines 7 through 10, enter -0- on line 11, and

go to line 12. Otherwise, go to line 7.

Divide line 2b by line 4. Enter the result as a decimal (rounded

411

to at least three places)

Divide line 3 by line 4. Enter the result as a decimal (rounded to

at least three places)

Multiply line 6 by line 7. Enter the result here. See the instructions

452

for where to report this amount on your return

Multiply line 6 by line 8. Enter the result here. See the instructions

for where to report this amount on your return

452

Add lines 9 and 10

Subtract line 11 from line 6. 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. If you

checked the box on line C above, see the instructions. Go to line 13 below

648

Tax on the First $1,700 of Child’s Interest and Dividends

Part II

850

Amount not taxed

1,950

Subtract line 13 from line 4. If the result is zero or less, enter -0-

Tax. Is the amount on line 14 less than $850?

No. Enter $85 here and see the Note below.

Yes. Multiply line 14 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 15 in the tax you enter

on Form 1040, line 44, or Form 1040NR, line 41. Be sure to check box a on Form 1040, line 44, or Form 1040NR, line 41.

8814

For Paperwork Reduction Act Notice, see page 3.

Cat. No. 10750J

Form

(2006)

Publication 929 (2006)

Page 9

Publication 929 - Tax Rules For Children And Dependents - 2006 Page 9

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