U.S. Individual Income Tax Return

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Instructions for Form 8615

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10:58 - 9-NOV-2009

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2009

Department of the Treasury
Internal Revenue Service

Instructions for Form 8615
Tax for Certain Children Who Have Investment Income of More Than $1,900

General Instructions

IF a child was
born on...

Purpose of Form
For children under age 18 and certain
older children described below in Who
Must File, investment income over $1,900
is taxed at the parent’s rate if the parent’s
rate is higher than the child’s. If the child’s
investment income is more than $1,900,
use Form 8615 to figure the child’s tax.

Investment Income
For Form 8615, “investment income”
includes all taxable income other than
earned income as defined on page 2.
Investment income includes taxable
interest, ordinary dividends, capital gains
(including capital gain distributions), rents,
royalties, etc. It also includes taxable
social security benefits, pension and
annuity income, and income (other than
earned income) received as the
beneficiary of a trust.

Who Must File
Form 8615 must be filed for any child who
meets all of the following conditions.
1. The child had more than $1,900 of
investment income.
2. The child is required to file a tax
return.
3. The child either:
a. Was under age 18 at the end of
2009,
b. Was age 18 at the end of 2009 and
did not have earned income that was
more than half of the child’s support, or
c. Was a full-time student over age 18
and under age 24 at the end of 2009 and
did not have earned income that was
more than half of the child’s support.
(Earned income is defined on page 2.
Support is defined below.)
4. At least one of the child’s parents
was alive at the end of 2009.
5. The child does not file a joint return
for 2009.
Support. Your child’s support includes
all amounts spent to provide the child with
food, lodging, clothing, education, medical
and dental care, recreation,
transportation, and similar necessities. To
figure your child’s support, count support
provided by you, your child, and others.
However, a scholarship received by your
child is not considered support if your
child is a full-time student. See Pub. 501
for details.
Certain January 1 birthdays. Use the
following chart to determine whether
certain children with January 1 birthdays
meet condition 3 under Who Must File.

THEN, at the end
of 2009, the child
is considered to
be...

January 1, 1992

18*

January 1, 1991

19**

January 1, 1986

24***

*This child is not under age 18. The child
meets condition 3 only if the child did not
have earned income that was more than half
of the child’s support.
**This child meets condition 3 only if the
child was a full-time student who did not
have earned income that was more than half
of the child’s support.
***Do not use Form 8615 for this child.

The parent may be able to elect to

TIP report the child’s interest, ordinary
dividends, and capital gain
distributions on the parent’s return. If the
parent makes this election, the child will
not have to file a return or Form 8615.
However, the federal income tax on the
child’s income, including qualified
dividends and capital gain distributions,
may be higher if this election is made. For
more details, see Form 8814, Parents’
Election To Report Child’s Interest and
Dividends.

Additional Information
For more details, see Pub. 929, Tax
Rules for Children and Dependents.

Incomplete Information for
Parent or Other Children
If the parent’s taxable income, filing
status, or the net investment income of
the parent’s other children is not known
by the due date of the child’s return,
reasonable estimates can be used. Enter
“Estimated” next to the appropriate line(s)
of Form 8615. When the correct
information is available, file Form 1040X,
Amended U.S. Individual Income Tax
Return.
Instead of using estimates, the child
can get an automatic 6-month extension
of time to file. For details, see Form 4868,
Application for Automatic Extension of
Time To File U.S. Individual Income Tax
Return.

Amended Return
If after the child’s return is filed, the
parent’s taxable income changes or the
net investment income of any of the
parent’s other children changes, the
child’s tax must be refigured using the
Cat. No. 28914R

adjusted amounts. If the child’s tax
changes, file Form 1040X to correct the
child’s tax.

Alternative Minimum Tax
A child whose tax is figured on Form 8615
may owe the alternative minimum tax. For
details, see Form 6251, Alternative
Minimum Tax — Individuals, and its
instructions.

Line Instructions
Lines A and B
If the child’s parents were married to each
other and filed a joint return, enter the
name and social security number (SSN)
of the parent who is listed first on the joint
return.
If the parents were married but filed
separate returns, enter the name and
SSN of the parent who had the higher
taxable income. If you do not know which
parent had the higher taxable income,
see Pub. 929.
If the parents were unmarried, treated
as unmarried for federal income tax
purposes, or separated by either a
divorce or separate maintenance decree,
enter the name and SSN of the parent
with whom the child lived for most of the
year (the custodial parent).
Exceptions. If the custodial parent
remarried and filed a joint return with his
or her new spouse, enter the name and
SSN of the person listed first on the joint
return, even if that person is not the
child’s parent. If the custodial parent and
his or her new spouse filed separate
returns, enter the name and SSN of the
person with the higher taxable income,
even if that person is not the child’s
parent.
If the parents were unmarried but lived
together during the year with the child,
enter the name and SSN of the parent
who had the higher taxable income.

Line 1
If the child had no earned income
(defined on page 2), enter the child’s
adjusted gross income from Form 1040,
line 38; Form 1040A, line 22; or Form
1040NR, line 36.
If the child had earned income, use the
worksheet on page 2 to figure the amount
to enter on line 1. But use Pub. 929
instead of the worksheet to figure the
amount to enter on line 1 if the child:
• Files Form 2555 or 2555-EZ (relating to
foreign earned income),

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Instructions for Form 8615

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• Has a net loss from self-employment,
or

• Claims a net operating loss deduction.
Earned income. Earned income
includes wages, tips, and other payments
received for personal services performed.
Generally, it is the total of the amounts
reported on Form 1040, lines 7, 12, and
18; Form 1040A, line 7; or Form 1040NR,
lines 8, 13, and 19.
Earned income also includes any
taxable distribution from a qualified
disability trust. A qualified disability trust is
any nongrantor trust:
1. Described in 42 U.S.C.
1396p(c)(2)(B)(iv) and established solely
for the benefit of an individual under 65
years of age who is disabled, and
2. All the beneficiaries of which are
determined by the Commissioner of
Social Security to have been disabled for
some part of the tax year within the
meaning of 42 U.S.C. 1382c(a)(3).
A trust will not fail to meet (2) above
just because the trust’s corpus may revert
to a person who is not disabled after the
trust ceases to have any disabled
beneficiaries.
Child’s Investment Income
Worksheet — Line 1
Keep for Your Records

1. Enter the amount from the child’s
Form 1040, line 22; Form 1040A,
line 15; or Form 1040NR, line 23,
whichever applies . . . . . . . . . .
2. Enter the child’s earned income
(defined above) plus the amount
of any penalty on early
withdrawal of savings from the
child’s Form 1040, line 30, or
Form 1040NR, line 29, whichever
applies . . . . . . . . . . . . . . . . .
3. Subtract line 2 from line 1. Enter
the result here and on Form
8615, line 1 . . . . . . . . . . . . . .

Line 2
If the child itemized deductions, enter the
larger of:
• $1,900, or
• $950 plus the portion of the amount on
Schedule A (Form 1040), line 29 (or Form
1040NR, Schedule A, line 17), that is
directly connected with the production of
the investment income on Form 8615,
line 1.

the amount from line 3 of that worksheet,
instead of the parent’s taxable income.

Line 8
Enter on this line the total of lines 5, 6,
and 7. You must determine the amount of
net capital gain and qualified dividends
included on this line before completing
line 9.
Net capital gain. Net capital gain is
the smaller of the gain, if any, on
Schedule D, line 15, or the gain, if any, on
Schedule D, line 16. If Schedule D is not
required, it is the amount on line 13 of
Form 1040, line 10 of Form 1040A, or line
14 of Form 1040NR.
Qualified dividends. Qualified
dividends are those dividends reported on
line 9b of Form 1040 or Form 1040A or
line 10b of Form 1040NR.
Net capital gain and qualified
dividends on line 8. If neither the child,
nor the parent, nor any other child has net
capital gain, the net capital gain on line 8
is zero. (The term “other child” means any
other child whose Form 8615 uses the tax
return information of the parent identified
on Lines A and B of Form 8615.)
If neither the child, nor the parent, nor
any other child has qualified dividends,
the amount of qualified dividends on line
8 is zero.
If the child, parent, or any other child
has net capital gain, figure the amount of
net capital gain included on line 8 by
adding together the net capital gain
amounts included on lines 5, 6, and 7. If
the child, parent, or any other child has
qualified dividends, figure the amount of
qualified dividends included on line 8 by
adding together the qualified dividend
amounts included on lines 5, 6, and 7.
Use the following discussions to find
these amounts.
Net capital gain or qualified
dividends on line 5. If the child has a
net capital gain or qualified dividends, use
the appropriate Line 5 Worksheet on this
page or page 3 to find the amount of each
included on line 5. These worksheets are
needed to adjust the child’s net capital
gain and qualified dividends by the
appropriate allocated amount of the
child’s deductions.
Line 5 Worksheet #1
Keep for Your Records

Line 4
If the child files Form 2555 or 2555-EZ
(relating to foreign earned income), enter
the amount from line 3 of the child’s
Foreign Earned Income Tax Worksheet
(in the Form 1040 instructions), instead of
the child’s taxable income.

5. Divide line 2 by line 3. Enter the
result as a decimal (rounded to
at least three places). Do not
enter more than 1.000 . . . . . .
6. Multiply $1,900 by line 4 . . . . .
7. Multiply $1,900 by line 5 . . . . .
8. Qualified dividends on Form
8615, line 5. Subtract line 6 from
line 1 (but do not enter less than
zero or more than the amount on
Form 8615, line 5) . . . . . . . . .
9. Net capital gain on Form 8615,
line 5. Subtract line 7 from line 2
(but do not enter less than zero
or more than the excess of Form
8615, line 5, over line 8 of this
worksheet) . . . . . . . . . . . . . .

Line 5 Worksheet #2
Keep for Your Records

Use this worksheet only if line 2 of the child’s
Form 8615 is more than $1,900 and lines 3
and 5 are the same amount.
1. Enter the child’s qualified
dividends . . . . . . . . . . . . . . .
2. Enter the child’s net capital gain
3. Add lines 1 and 2 . . . . . . . . .
4. Divide line 1 by line 3. Enter the
result as a decimal (rounded to
at least three places) . . . . . . .
5. Enter the child’s itemized
deductions directly connected
with the production of the child’s
qualified dividends or net capital
gain . . . . . . . . . . . . . . . . . .
6. Multiply line 4 by line 5 . . . . . .
7. Subtract line 6 from line 5 . . . .
8. Subtract line 7 from line 2 . . . .
9. Subtract line 6 from line 1 . . . .
10. Enter the amount from the
child’s Form 8615, line 1 . . . . .
11. Divide line 1 by line 10. Enter
the result as a decimal (rounded
to at least three places). Do not
enter more than 1.000 . . . . . .
12. Divide line 2 by line 10. Enter
the result as a decimal (rounded
to at least three places). Do not
enter more than 1.000 minus
the amount on line 11 . . . . . .
13. Multiply $950 by line 11 . . . . .

Use this worksheet only if line 2 of the child’s
Form 8615 is $1,900 and lines 3 and 5 are the
same amount.
1. Enter the child’s qualified
dividends . . . . . . . . . . . . . . .

Line 6

2. Enter the child’s net capital gain

If the parent filed a joint return, enter the
taxable income shown on that return even
if the parent’s spouse is not the child’s
parent.
If the Foreign Earned Income Tax
Worksheet (in the Form 1040 instructions)
was used to figure the parent’s tax, enter

3. Enter the amount from the
child’s Form 8615, line 1 . . . . .
4. Divide line 1 by line 3. Enter the
result as a decimal (rounded to
at least three places). Do not
enter more than 1.000 . . . . . .

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14. Multiply $950 by line 12 . . . . .
15. Qualified dividends on Form
8615, line 5. Subtract line 13
from line 9 (but do not enter less
than zero or more than the
amount on Form 8615, line 5)
16. Net capital gain on Form
8615, line 5. Subtract line 14
from line 8 (but do not enter less
than zero or more than the
excess of Form 8615, line 5,
over line 15 of this worksheet)

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Instructions for Form 8615

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Line 5 Worksheet #3
Keep for Your Records

Use this worksheet only if the child’s Form
8615, line 5, is less than line 3.
1. Enter the child’s qualified
dividends . . . . . . . . . . . . . . . .
2. Enter the child’s net capital gain
3. Add lines 1 and 2 . . . . . . . . . .
4. Divide line 1 by line 3. Enter the
result as a decimal (rounded to at
least three places) . . . . . . . . . .
5. If the child itemized deductions,
enter the child’s itemized
deductions directly connected
with the production of the income
on line 3 . . . . . . . . . . . . . . . .
6. Multiply line 4 by line 5 . . . . . . .
7. Subtract line 6 from line 5 . . . . .
8. Subtract line 7 from line 2 . . . . .
9. Subtract line 6 from line 1 . . . . .
10. If the child can claim his or her
own exemption, enter $3,650*.
Otherwise, enter -0- . . . . . . . . .
11. If the child itemized deductions,
enter the child’s itemized
deductions not directly connected
with the production of the income
on line 3. Otherwise, enter the
child’s standard deduction . . . .
12. Add lines 10 and 11 . . . . . . . . .
13. Enter the child’s adjusted gross
income (Form 1040, line 38;
Form 1040A, line 22; or Form
1040NR, line 36) . . . . . . . . . . .
14. Divide line 3 by line 13. Enter the
result as a decimal (rounded to at
least three places). Do not enter
more than 1.000 . . . . . . . . . . .
15. Multiply line 12 by line 14 . . . . .
16. Multiply line 15 by line 4 . . . . . .
17. Subtract line 16 from line 15 . . .
18. Qualified dividends on Form
8615, line 5. Subtract line 16
from line 9. Enter the result here
(but do not enter less than zero or
more than the amount on Form
8615, line 5) . . . . . . . . . . . . . .
19. Net capital gain on Form 8615,
line 5. Subtract line 17 from line 8
(but do not enter less than zero or
more than the excess of Form
8615, line 5, over line 18 of this
worksheet) . . . . . . . . . . . . . . .
*If you enter more than $125,100 on line 13, see the
Deduction for Exemptions Worksheet in the Form
1040, Form 1040A, or Form 1040NR instructions
for the amount to enter on line 10.

Net capital gain or qualified
dividends on line 6. If the parent has a
net capital gain, its full amount is the net
capital gain included on line 6. If the
parent has qualified dividends, the full
amount is the amount of qualified
dividends included on line 6.

Net capital gain or qualified
dividends on line 7. The net capital
gain included on line 7 is the total of the
amounts of net capital gain included on
line 5 of the other children’s Forms 8615.
The qualified dividends included on line 7
is the total of the amounts of qualified
dividends included on line 5 of the other
children’s Forms 8615. Find these
amounts for each other child as explained
under Net capital gain or qualified
dividends on line 5 on page 2. (Do not
attach the other children’s Forms 8615 to
this child’s return.)

Line 9
Figure the tax using the Tax Table, Tax
Computation Worksheet, Qualified
Dividends and Capital Gain Tax
Worksheet, Schedule D Tax Worksheet,
or Schedule J, whichever applies. If line 8
includes any net capital gain or qualified
dividends, use the Qualified Dividends
and Capital Gain Tax Worksheet in the
Form 1040, 1040A, or 1040NR
instructions to figure the tax, unless you
have to use the Schedule D Tax
Worksheet or Schedule J (see below).
Schedule D Tax Worksheet. If the
child, parent, or any other child has to file
Schedule D and line 18 or 19 of any
Schedule D is more than zero, use the
Schedule D Tax Worksheet in the
Instructions for Schedule D to figure the
tax. See Pub. 929 for details on how to
figure the line 9 tax using the Schedule D
Tax Worksheet.
Schedule J. If any farming or fishing
income (including certain amounts
received in connection with the Exxon
Valdez litigation) is included on line 8, the
tax may be less if you use Schedule J. If
Schedule J was used to figure the tax on
the parent’s return, see Pub. 929 for
details on how to figure the tax.
Child files Form 2555 or 2555-EZ. If
line 8 includes any net capital gain or
qualified dividends and the child or any
other child filing Form 8615 also files
Form 2555 or 2555-EZ, see Pub. 929 for
instructions on how to figure the line 9
tax.
Using the Qualified Dividends and
Capital Gain Tax Worksheet for line 9
tax. If you use the Qualified Dividends
and Capital Gain Tax Worksheet to figure
the line 9 tax, complete that worksheet as
follows.
1. On line 1, enter the amount from
Form 8615, line 8.
2. On line 2, enter the amount of
qualified dividends included on Form
8615, line 8. (See the instructions for line
8.)
3. On line 3, enter the amount of the
net capital gain included on Form 8615,
line 8. (See the instructions for line 8.)
4. Complete line 4 following the
worksheet instructions.
5. If you are completing the worksheet
in the Form 1040 instructions, enter on
line 5 the total of the amounts, if any, on
line 4g of all Forms 4952 filed by the
child, parent, or any other child. Then
complete line 6 following the worksheet
instructions.

-3-

6. If the Foreign Earned Income Tax
Worksheet was used to figure the
parent’s tax, go to step 7 below.
Otherwise, skip steps 7, 8, and 9 below,
and go to step 10.
7. Determine whether there is a line 8
capital gain excess. To do this, subtract
from line 1 of the worksheet the amount
on line 2 of the parent’s Foreign Earned
Income Tax Worksheet. Subtract the
result from line 6 of this Qualified
Dividends and Capital Gain Tax
Worksheet (line 4 of the worksheet in the
Form 1040A or Form 1040NR
instructions). If the result is more than
zero, that amount is the line 8 capital gain
excess. If the result is zero or less, there
is no line 8 capital gain excess.
8. If there is no line 8 capital gain
excess, skip step 9 below and go to step
10.
9. If there is a line 8 capital gain
excess, complete a second Qualified
Dividends and Capital Gain Tax
Worksheet as instructed above and in
step 10 below but in its entirety and with
the following additional modifications.
a. Reduce the amount you would
otherwise enter on line 3 (but not below
zero) by the line 8 capital gain excess.
b. Reduce the amount you would
otherwise enter on line 2 (but not below
zero) by any of the line 8 capital gain
excess not used in (a) above.
10. Complete lines 7 through 18 (lines
5 through 16 of the worksheet in the Form
1040A or Form 1040NR instructions)
following the worksheet instructions. Use
the parent’s filing status to complete lines
8, 15, and 17 (lines 6, 13, and 15 of the
worksheet in the Form 1040A or Form
1040NR instructions).
Enter the amount from line 18 of the
Qualified Dividends and Capital Gain Tax
Worksheet (or line 16 of the worksheet in
the Form 1040A or Form 1040NR
instructions) on Form 8615, line 9, and
check the box on that line. Do not attach
this worksheet to the child’s return.

Line 10
If the parent filed a joint return, enter the
tax shown on that return even if the
parent’s spouse is not the child’s parent.
If the Foreign Earned Income Tax
Worksheet (in the Form 1040 instructions)
was used to figure the parent’s tax, enter
the amount from line 4 of that worksheet,
instead of the parent’s tax from Form
1040, line 44.

Line 15
Figure the tax using the Tax Table, Tax
Computation Worksheet, Qualified
Dividends and Capital Gain Tax
Worksheet, Schedule D Tax Worksheet,
or Schedule J, whichever applies. If line
14 includes any net capital gain or
qualified dividends (see page 4), use the
Qualified Dividends and Capital Gain Tax
Worksheet to figure this tax. However, if
the child has to file Schedule D and line
18 or line 19 of the child’s Schedule D is
more than zero, use the Schedule D Tax
Worksheet to figure this tax instead. See

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Instructions for Form 8615

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Pub. 929 for details on how to figure the
line 15 tax using the Schedule D Tax
Worksheet.
Before using the Qualified Dividends
and Capital Gain Tax Worksheet to figure
the line 15 tax, you will need to know the
amount of net capital gain and qualified
dividends, if any, included on line 14.
Net capital gain and qualified
dividends on line 14. If the child does
not have any net capital gain or qualified
dividends, line 14 does not include any
net capital gain or qualified dividends.
If the child has net capital gain, the
amount of net capital gain included on
line 14 is the amount from line 2 of the
child’s completed Line 5 Worksheet
minus the amount from the last line of that
worksheet.
If the child has qualified dividends, the
amount of qualified dividends included on
line 14 is the amount from line 1 of the
child’s completed Line 5 Worksheet
minus the amount from the next to the
last line of that worksheet.
Child files Form 2555 or 2555-EZ. If
line 14 includes any net capital gain or
qualified dividends and the child files
Form 2555 or 2555-EZ, see Pub. 929 for
instructions on how to figure the line 15
tax.
Using the Qualified Dividends and
Capital Gain Tax Worksheet for line 15
tax. If you use the Qualified Dividends
and Capital Gain Tax Worksheet to figure
the line 15 tax, complete that worksheet
as follows.
1. On line 1, enter the amount from
Form 8615, line 14.
2. On line 2, enter the amount of the
qualified dividends included on Form
8615, line 14. (See Net capital gain and
qualified dividends on line 14 on this
page.)
3. On line 3, enter the amount of the
net capital gain included on Form 8615,
line 14. (See Net capital gain and
qualified dividends on line 14 on this
page.)

4. Complete line 4 following the
worksheet instructions.
5. If you are completing the worksheet
in the Form 1040 instructions, leave line 5
blank.
6. Complete lines 6 through 18 (lines
5 through 16 of the worksheet in the Form
1040A or Form 1040NR instructions)
following the worksheet instructions. Use
the child’s filing status to complete lines 8,
15, and 17 of the worksheet for Form
1040 (lines 6, 13, and 15 of the worksheet
for Form 1040A or Form 1040NR).
Enter the amount from line 18 of this
Qualified Dividends and Capital Gain Tax
Worksheet (line 16 of the worksheet in
the Form 1040A or Form 1040NR
instructions) on line 15 of Form 8615 and
check the box on that line. Do not attach
this worksheet to the child’s return.
Using Schedule J for line 15 tax. If line
14 includes any farming or fishing income
(including certain amounts received in
connection with the Exxon Valdez
litigation), the tax may be less if you use
Schedule J. See Pub. 929 for details on
how to figure the line 15 tax using
Schedule J.

Line 17
Figure the tax using the Tax Table, Tax
Computation Worksheet, Qualified
Dividends and Capital Gain Tax
Worksheet, Schedule D Tax Worksheet,
or Schedule J, whichever applies. If line 4
includes any qualified dividends or net
capital gain, use the Qualified Dividends
and Capital Gain Tax Worksheet to figure
the tax unless the Schedule D Tax
Worksheet has to be used instead. If any
farming or fishing income (including
certain amounts received in connection
with the Exxon Valdez litigation) is
included on line 4, the tax may be less if
you use Schedule J.
Child files Form 2555 or 2555-EZ. If
line 4 includes any qualified dividends or
net capital gain and the child files Form

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2555 or 2555-EZ, see Pub. 929 for
instructions on how to figure the line 17
tax.

Line 18
If the child files Form 2555 or 2555-EZ,
do not enter the amount from Form 8615,
line 18, on the child’s Form 1040, line 44.
Instead, enter the amount from Form
8615, line 18, on line 4 of the child’s
Foreign Earned Income Tax Worksheet
(in the Form 1040 instructions). Then
complete the rest of the Foreign Earned
Income Tax Worksheet to figure the
child’s tax.
Paperwork Reduction Act Notice. We
ask for the information on this form to
carry out the Internal Revenue laws of the
United States. You are required to give us
the information. We need it to ensure that
you are complying with these laws and to
allow us to figure and collect the right
amount of tax.
You are not required to provide the
information requested on a form that is
subject to the Paperwork Reduction Act
unless the form displays a valid OMB
control number. Books or records relating
to a form or its instructions must be
retained as long as their contents may
become material in the administration of
any Internal Revenue law. Generally, tax
returns and return information are
confidential, as required by Internal
Revenue Code section 6103.
The average time and expenses
required to complete and file this form will
vary depending on individual
circumstances. For the estimated
averages, see the instructions for your
income tax return.
If you have suggestions for making this
form simpler, we would be happy to hear
from you. See the instructions for your
income tax return.