What filing form allows parents to report their child's interest and dividends?

The correct choice is Form 8814, which is specifically designed for parents to report a child's unearned income, such as interest and dividends, on their own tax return. This form allows parents to include their child's income directly on their tax return rather than requiring the child to file a separate return.

When using Form 8814, parents can elect to report up to a certain threshold of their child's interest and dividend income, which makes the process simpler and may help them avoid the necessity of filing separate tax returns for their child. The income that can be reported on this form primarily includes amounts that exceed a specific limit, which, if reached, may require the child to file their own return.

The other forms listed serve different purposes. Form 1099-INT is used by financial institutions to report interest income paid to taxpayers, while Form 1099-DIV is used to report dividends received. Form 3508 is used for the Paycheck Protection Program (PPP) loan forgiveness application and is unrelated to reporting child income. Therefore, they do not apply to the situation of reporting a child's interest and dividends on a parent's tax return.