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740 Np R  Form

740 Np R Form

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okay for this video i wanted to go over the irs form 8814 which is the parents election to report their children's interests and dividend income on their 1040 tax return so why does this situation arise well generally children are not required to file a tax return right if you're under 18 you're not working and you have no income then you don't have to file right only your parents have to file where this situation arises if the child has accounts set up in its name where it's earning investment income so things like interest dividends capital gain distributions it's common these days for parents to set up these accounts for their kids usually for college savings or things like that and so if there is income earned in that account and we reach certain thresholds we have to report it and pay tax on it now i've got the 88 in front of us 8814 in front of us which we'll go through with a full 1040 for the individual parent here

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