Form 8814 is used by parents who elect to report the interest and dividends of certain children under age 24 on their own tax return. This form is part of the parent's return, not the child's.
We advise that you compare the results of using this form with the results of using Form 8615 (that is, having your child report the income on his or her own return but pay tax at your marginal tax rate). As a general rule, though, the tax will be lower if you use Form 8615 because fewer deductions are available on Form 8814.
Like Form 8615, Form 8814 makes sure that the child's investment income, such as interest and dividends, gets taxed at the parent's top tax bracket (i.e., as if it were earned by the parent). The IRS is against tax shelters and certainly does not want to let a parent use a child as a tax shelter.
Important Note: do not confuse this form with Form 8615. Unlike Form 8615, this form is part of the parent's return, not the child's.