U.S. Individual Income Tax Return

2011

Instructions for Form 8615

Department of the Treasury
Internal Revenue Service

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

General Instructions

Certain January 1 birthdays. Use the following chart to
determine whether certain children with January 1
birthdays meet condition 3 under Who Must File.

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 later.
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 2011,
b. Was age 18 at the end of 2011 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 2011 and did not have earned income
that was more than half of the child’s support.
(Earned income is defined later. Support is defined
below.)
4. At least one of the child’s parents was alive at the
end of 2011.
5. The child does not file a joint return for 2011.
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. For details, see Pub. 501, Exemptions, Standard
Deduction, and Filing Information.

Nov 28, 2011

IF a child was born on...

THEN, at the end of 2011,
the child is considered to
be...

January 1, 1994

18*

January 1, 1993

19**

January 1, 1988

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 report the
TIP 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.

Cat. No. 28914R

Amended Return

income from the trade or business is considered earned
income. In that case, earned income is generally 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).

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 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

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.

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.

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
earlier) plus the amount of any penalty on
early withdrawal of savings from the child’s
Form 1040, line 30, or Form 1040NR, line 30,
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
15), that is directly connected with the production of the
investment income on Form 8615, line 1.

Line 1
If the child had no earned income (defined below), enter
the child’s adjusted gross income from Form 1040, line
38; Form 1040A, line 22; or Form 1040NR, line 37.
If the child had earned income, use the Child’s
Investment Income Worksheet, later, 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),
• 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. If the child is a sole proprietor or a partner in
a trade or business in which both personal services and
capital are material income-producing factors, earned
income also includes a reasonable allowance for
compensation for personal services, but not more than
30% of the child’s share of the net profits from that trade
or business (after subtracting the deduction for the
employer-equivalent portion of self-employment tax).
However, the 30% limit does not apply if there are no net
profits from the trade or business. If capital is not an
income-producing factor and the child’s personal services
produced the business income, all of the child’s gross

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.

Line 6
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 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 (Form 1040), line 15, or the
gain, if any, on Schedule D (Form 1040), line 16. If
Schedule D (Form 1040) is not required, it is the amount
-2-

Instructions for Form 8615 (2011)

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 in these instructions to
find the amount 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.

2011 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 of the child’s Form 8615
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 . . . . . . . . . . .

2011 Line 5 Worksheet #1

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 . . . . . . . . . . . . . . . . . . .

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.

13. Multiply $950 by line 11 . . . . . . . . . . . . . . .

Keep for Your Records

14. Multiply $950 by line 12 . . . . . . . . . . . . . . .

1. Enter the child’s qualified dividends . . . . . . .

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) . . . . . . . . . . . . . . . . . . .

2. Enter the child’s net capital gain . . . . . . . . .
3. Enter the amount from the child’s Form 8615,
line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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) . . . . . . . . . . . . . . . . . . . . . . . .

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 . . . . . . . . . . .
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 of this worksheet 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 of this worksheet 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) . . . . . . . . . . . . . . . . . . .

Instructions for Form 8615 (2011)

-3-

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
(Form 1040), 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 (Form 1040) (see below).

2011 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.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.
13.
14.
15.
16.
17.
18.

19.

Enter the child’s qualified dividends . . . . . . . .
Enter the child’s net capital gain . . . . . . . . . .
Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . .
Divide line 1 by line 3. Enter the result as a
decimal (rounded to at least three places) . . .
If the child itemized deductions, enter the
child’s itemized deductions directly connected
with the production of the income on line 3 . . .
Multiply line 4 by line 5 . . . . . . . . . . . . . . . . .
Subtract line 6 from line 5 . . . . . . . . . . . . . . .
Subtract line 7 from line 2 . . . . . . . . . . . . . . .
Subtract line 6 from line 1 . . . . . . . . . . . . . . .
If the child can claim his or her own
exemption, enter $3,700. Otherwise, enter -0If the child itemized deductions, enter the
child’s itemized deductions not directly
connected with the production of the income
shown on line 3 of this worksheet. Otherwise,
enter the child’s standard deduction . . . . . . .
Add lines 10 and 11 . . . . . . . . . . . . . . . . . . .
Enter the child’s adjusted gross income (Form
1040, line 38; Form 1040A, line 22; or Form
1040NR, line 37) . . . . . . . . . . . . . . . . . . . . .
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 . . . . . . . . . . . . . .
Multiply line 12 by line 14 . . . . . . . . . . . . . . .
Multiply line 15 by line 4 . . . . . . . . . . . . . . . .
Subtract line 16 from line 15 . . . . . . . . . . . . .
Qualified dividends on Form 8615, line 5.
Subtract line 16 of this worksheet from line 9.
Enter the result here (but do not enter less
than zero or more than the amount on Form
8615, line 5) . . . . . . . . . . . . . . . . . . . . . . . .
Net capital gain on Form 8615, line 5.
Subtract line 17 of this worksheet 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) . . . . . . . . . . . . . . . . . . . .

Schedule D Tax Worksheet. If the child, parent, or any
other child has to file Schedule D (Form 1040) and line
18 or 19 of any Schedule D (Form 1040) is more than
zero, use the Schedule D Tax Worksheet in the
Instructions for Schedule D (Form 1040) 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 (Form 1040). 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 (Form 1040). If
Schedule J (Form 1040) 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.
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.

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
discussed earlier. (Do not attach the other children’s
Forms 8615 to this child’s return.)
-4-

Instructions for Form 8615 (2011)

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, earlier.)
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, earlier.)
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 19 (lines 5 through 16 of
the worksheet in the Form 1040A instructions or lines 5
through 17 of the worksheet in the Form 1040NR
instructions) following the worksheet instructions. Use the
child’s filing status to complete lines 8, 16, and 18 of the
worksheet for Form 1040 (lines 6, 13, and 15 of the
worksheet for Form 1040A or lines 6, 14, and 16 of the
worksheet for Form 1040NR).

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 19 (lines 5 through 16 of
the worksheet in the Form 1040A instructions or lines 5
through 17 in the Form 1040NR instructions) following
the worksheet instructions. Use the parent’s filing status
to complete lines 8, 16, and 18 (lines 6, 13, and 15 of the
worksheet in the Form 1040A instructions or lines 6, 14,
and 16 of the worksheet in the Form 1040NR
instructions).
Enter the amount from line 19 of the Qualified
Dividends and Capital Gain Tax Worksheet (or line 16 of
the worksheet in the Form 1040A instructions or line 17
of this worksheet in the 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.

Enter the amount from line 19 of this Qualified
Dividends and Capital Gain Tax Worksheet (line 16 of the
worksheet in the Form 1040A instructions or line 17 of
the worksheet in the 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 (Form 1040) 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 (Form 1040). See Pub. 929 for details on how
to figure the line 15 tax using Schedule J (Form 1040).

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
(Form 1040), whichever applies. If line 14 includes any
net capital gain or qualified dividends (see below), use
the Qualified Dividends and Capital Gain Tax Worksheet
to figure this tax. However, if the child has to file
Schedule D (Form 1040) and line 18 or line 19 of the
child’s Schedule D (Form 1040) is more than zero, use
the Schedule D Tax Worksheet to figure this tax instead.
See 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.

Instructions for Form 8615 (2011)

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
(Form 1040), 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 (Form 1040).
Child files Form 2555 or 2555-EZ. If line 4 includes
any qualified dividends or net capital gain and the child
files Form 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.

-5-