8 Common Mistakes When Filing Form 4547

IRS Form 4547 is a straightforward form. But small mistakes can cost your child real money — either by delaying the account or by missing the $1,000 deposit entirely. Here are the most common errors parents make and how to avoid them.

Mistake 1: Not Electing the $1,000 Pilot Deposit

This is the biggest one. The $1,000 federal pilot contribution is not automatic. You must explicitly check the election box on IRS Form 4547. If you skip it, your child's account opens with $0 instead of $1,000.

The pilot deposit is available for children born between 2025 and 2028. If your child qualifies, make sure you elect it.

Mistake 2: Entering the Wrong SSN

A single transposed digit in your child's Social Security Number can delay processing for weeks. The IRS validates SSNs against Social Security Administration records, and a mismatch means your form gets flagged for manual review.

How to avoid it: Have your child's Social Security card in front of you when filling out the form. Read each digit twice. If filing electronically, copy-paste is not reliable — type the number carefully.

Mistake 3: Filing as the Wrong Authorized Individual

The IRS follows a strict priority order for who can file IRS Form 4547:

1. Parent (biological or adoptive)
2. Legal guardian
3. Adult sibling
4. Grandparent

If a grandparent files when a parent is available, the election may be rejected. The filer becomes the "responsible party" who manages the account until the child turns 18. Make sure the correct person files.

Mistake 4: Waiting for the Online Portal

The trumpaccounts.gov portal launches in mid-2026. If you wait instead of filing with your 2025 tax return (due April 15, 2026), you could delay your child's account by months.

Every month of delay is a month of lost compounding. At historical S&P 500 returns, even a 6-month delay on a $1,000 deposit means roughly $40-$50 less by age 18. With ongoing contributions, the cost of delay grows significantly.

Bottom line: File with your taxes. Don't wait for the portal.

Mistake 5: Filing One Form for Too Many Children

Each IRS Form 4547 covers up to two children. If you have three or more eligible children, you need multiple forms. Some parents try to squeeze all their children onto one form and end up with incomplete elections.

How to avoid it: Count your eligible children. Divide by two. That's how many forms you need.

Mistake 6: Assuming Tax Software Handles Everything

Not all tax software supports IRS Form 4547 for electronic filing yet. If your software doesn't include it, you have two options:

• Paper file: Print IRS Form 4547 and mail it with your paper tax return.
• File separately: E-file your tax return as normal, then mail IRS Form 4547 separately to the IRS.

Check with your tax software provider before assuming the form is included. Major providers like TurboTax, H&R Block, and FreeTaxUSA are expected to add support, but timing varies.

Mistake 7: Not Choosing an Index Fund

IRS Form 4547 asks you to select an eligible index fund for your child's investments. If you leave this blank or choose an ineligible fund, the election may be delayed while the IRS contacts you for clarification.

Eligible funds must track the S&P 500 or a broad U.S. equity index with expense ratios at or below 0.1%. Popular options include:

Mistake 8: Not Keeping a Copy

Keep a copy of your completed IRS Form 4547 for your records. If the IRS has questions or if there is a processing issue, having your copy makes resolution much faster.

If filing electronically, save a PDF. If mailing, photocopy the signed form before sending.

Quick Checklist Before You File

Filing IRS Form 4547 correctly the first time saves you weeks of delay and ensures your child's money starts growing as soon as possible. Take 10 extra minutes to double-check everything.