Requirements for Children with Investment Income

California law conforms to federal law which allows parents’ election to report a child’s interest and dividend income from a child under age 19 or a full-time student under age 24 on the parent’s tax return. For each child under age 19 or full-time student under age 24 who received more than $2,600 of investment income in 2024, complete Form 540 and form FTB 3800, Tax Computation for Certain Children with Unearned Income, to figure the tax on a separate Form 540 for your child.

If you qualify, you may elect to report your child’s income of more than $1,300 but less than $13,000 on your tax return by completing form FTB 3803, Parents’ Election to Report Child’s Interest and Dividends. To make this election, your child’s income must be only from interest and/or dividends. To get forms FTB 3800 or FTB 3803, see “ Order Forms and Publications ” or go to ftb.ca.gov/forms .