U.S. Individual Income Tax Return Forms

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2023

Instructions for Form 8615

Department of the Treasury
Internal Revenue Service

Tax for Certain Children Who Have Unearned Income

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c. Was a full-time student at least age 19 and under age 24 at
the end of 2023 and didn’t have earned income that was
more than half of the child's support.

Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments

(Earned income is defined later. Support is defined below.)

For the latest information about developments related to Form 8615
and its instructions, such as legislation enacted after they were
published, go to IRS.gov/Form8615.

Reminders

Election to modify the tax on your unearned income. Taxpayers
may elect to modify their tax on dependent children with unearned
income for tax years 2018 and 2019. The election allows taxpayers
to recalculate the tax on dependent children with unearned income
for these years to be based on the parent’s individual tax rate instead
of the previous tax rates (condensed trust and estates tax rates).
If you choose to modify the tax on your unearned income using
the tentative tax based on the tax rate of your parent, you will need to
use the 2018 or 2019 Instructions for Form 8615 and file an
amended return, Form 1040-X, Amended U.S. Individual Income Tax
Return.
Generally, for a credit or refund, you must file Form 1040-X within
3 years (including extensions) after the date you filed your original
return or within 2 years after the date you paid the tax, whichever is
later.
See IRS.gov/Form1040X for more information about amending a
tax return. If you make this election, include a statement or an
attachment with your amended return specifying “election to modify
tax on unearned income.”

General Instructions
Purpose of Form

For children under age 18 and certain older children described
below in Who Must File, unearned income over $2,500 is taxed at
the parent's rate if the parent's rate is higher than the child's. If the
child's unearned income is more than $2,500, use Form 8615 to
figure the child's tax.

4. At least one of the child's parents was alive at the end of 2023.
5. The child doesn’t file a joint return for 2023.

For these rules, the term “child” includes a legally adopted child
and a stepchild. These rules apply whether or not the child is a
dependent. These rules don’t apply if neither of the child’s parents
were living at the end of the year.

Support. Your 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 isn’t
considered support if your child is a full-time student. For details, see
Pub. 501, Dependents, Standard Deduction, and Filing Information.
Certain January 1 birthdays. Use the following chart to determine
whether certain children with January 1 birthdays meet condition 3
under Who Must File, earlier.

IF you were born on...

Who Must File

Form 8615 must be filed for any child who meets all of the following
conditions.
1. The child had more than $2,500 of unearned income.
2. The child is required to file a tax return.

18*

January 1, 2005

19**

January 1, 2000

24***

The parent may be able to elect to report the child’s interest,

TIP ordinary dividends, and capital gain distributions on the

parent’s return. If the parent makes this election, the child
won’t 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.

Which Parent’s Return To Use

If a child’s parents are married to each other and file a joint return,
use the joint return to complete Form 8615. For other situations
when the parents do not file a joint return, see Parents Who Don't
File a Joint Return next.

Parents Who Don’t File a Joint Return

3. The child either:
a. Was under age 18 at the end of 2023,
b. Was age 18 at the end of 2023 and didn’t have earned
income that was more than half of the child's support, or
Nov 8, 2023

January 1, 2006

* This child isn't under age 18. The child meets condition 3 only if the
child didn't 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 didn't have earned income that was more than half of the child's
support.
*** Don’t use Form 8615 for this child.

Unearned Income

Unearned income is generally all income other than salaries, wages,
and other amounts received as pay for work actually performed
(earned income). It includes taxable interest, dividends, capital gains
(including capital gain distributions), rents, royalties, pension and
annuity income, taxable scholarship and fellowship grants not
reported on Form W-2, unemployment compensation, alimony, the
taxable part of social security and pension payments, and income
(other than earned income) received as the beneficiary of a trust.

THEN, at the end of 2023,
you are considered to be...

For parents who don’t file a joint return, the following discussions
explain which parent's tax return must be used to figure the tax.

Cat. No. 28914R

• Evidence the child has more than $2,500 of unearned income

Parents are married. If the child's parents file separate returns, use
the return of the parent with the greater taxable income.
Parents not living together. If the child's parents are married to
each other but not living together, and the parent with whom the
child lives (the custodial parent) is considered unmarried, use the
return of the custodial parent. If the custodial parent isn’t considered
unmarried, use the return of the parent with the greater taxable
income.
For an explanation of when a married person living apart from
their spouse is considered unmarried, see Head of Household in
Pub. 501.

(for example, a copy of the child's prior year tax return or copies
of Forms 1099 for the current year).
• The name, address, social security number (SSN) (if known),
and filing status (if known) of the parent whose information is to
be shown on Form 8615.

A child's legal representative making the request should include a
copy of their Power of Attorney, such as Form 2848, or proof of legal
guardianship.

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Amended Return

If the parents’ income changes after the child’s return is filed, the
child’s tax must be refigured using the adjusted amounts. The child's
tax must also be refigured if there are changes to the net unearned
income of other children for whom the parent is required to file a
Form 8615. If the child's tax changes, file Form 1040-X.

Parents are divorced. If the child's parents are divorced or legally
separated, and the parent who had custody of the child for the
greater part of the year (the custodial parent) hasn’t remarried, use
the return of the custodial parent.
Custodial parent remarried. If the custodial parent has
remarried, the stepparent (rather than the noncustodial parent) is
treated as the child's other parent. Therefore, if the custodial parent
and the stepparent file a joint return, use that joint return. Don’t use
the return of the noncustodial parent.
If the custodial parent and the stepparent are married, but file
separate returns, use the return of the one with the greater taxable
income. If the custodial parent and the stepparent are married but
not living together, the earlier discussion under Parents not living
together applies.

Alternative Minimum Tax (AMT)

A child may be subject to AMT if the child has certain items given
preferential treatment under the tax law. These items include
accelerated depreciation and certain tax-exempt interest income.
The AMT may also apply if you have passive activity losses or
certain distributions from estates or trusts.
For details, see Form 6251, Alternative Minimum
Tax—Individuals, and its instructions.

Net Investment Income Tax (NIIT)

Parents never married. If a child's parents have never been
married to each other, but lived together all year, use the return of
the parent with the greater taxable income. If the parents didn’t live
together all year, the rules explained earlier under Parents are
divorced apply.

A child whose tax is figured on Form 8615 may be subject to the
NIIT. NIIT is a 3.8% tax on the lesser of net investment income or the
excess of the child’s modified adjusted gross income (MAGI) over
the threshold amount. Use Form 8960, Net Investment Income Tax,
to figure this tax. For more information on NIIT, go to IRS.gov/NIIT.

Widowed parent remarried. If a widow or widower remarries, the
new spouse is treated as the child's other parent. The rules
explained earlier under Custodial parent remarried apply.

Specific Instructions

Incomplete Information for Filing

Lines A–C

If the parents' taxable income, filing status, or net unearned income
of the parents' other children isn't known by the original due date of
the child's return, the child should request an extension of time to file
using Form 4868, Application for Automatic Extension of Time To
File U.S. Individual Income Tax Return.

!

If the child’s parents were married to each other and filed a joint
return, enter the name and SSN of the parent who is listed first on
the joint return. On line C, check the box for the parent's filing status.
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 don’t know which parent had the higher taxable income, see
Which Parent's Return To Use, earlier.

An extension of time to file isn’t an extension of time to pay.

CAUTION

Parent with different tax year. If the parent and the child don’t
have the same tax year, complete Form 8615 using the information
on the parent's return for the tax year that ends in the child's tax year.

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 resided for the greater part of the calendar year. See
the definition of custodial parent in Pub. 501.

Example. Kimberly must use her mother's tax and taxable
income to complete her Form 8615 for calendar year 2023 (January
1–December 31). Kimberly's mother files her tax return on a fiscal
year basis (July 1–June 30). Kimberly must use the information on
her mother's return for the tax year ending June 30, 2023, to
complete her 2023 Form 8615.

Exceptions. If the custodial parent remarried and filed a joint return
with their new spouse, enter the name and SSN of the person listed
first on the joint return, even if that person isn’t the child’s parent. If
the custodial parent and their new spouse filed separate returns,
enter the name and SSN of the person with the higher taxable
income, even if that person isn’t 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.

Parent's return information unavailable. If a child can’t get the
required information about their parent's tax return, the child (or the
child's legal representative) can request the necessary information
from the IRS.
How to request. After the end of the tax year, send a signed,
written request for the information to the Internal Revenue Service
Center where the parent's return will be filed. (The IRS can’t process
a request received before the end of the tax year.)
The request must contain all of the following.
• A statement that you are making the request to comply with
section 1(g) of the Internal Revenue Code and that you have
tried to get the information from the parent.
• Proof of the child's age (for example, a copy of the child's birth
certificate).

Line 1

If the child had no earned income (defined below), enter the child’s
adjusted gross income from Form 1040 or 1040-NR, line 11.

If the child had earned income, use the Child's Unearned Income
Worksheet, later, to figure the amount to enter on line 1. But use the
Alternate Worksheet for Form 8615, Line 1 to figure the amount to
enter on line 1 if the child:
• Files Form 2555 (relating to foreign earned income),
• Has a net loss from self-employment, or
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Instructions for Form 8615

• Claims a net operating loss deduction.

• Capital gains—$300.
• Capital losses—($200).

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 one-half of
self-employment tax). However, the 30% limit doesn’t apply if there
are no net profits from the trade or business.
If capital isn’t an income-producing factor and the child’s personal
services produced the business income, all of the child’s gross
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, line 1z; Schedule 1 (Form 1040), lines 3 and
6; or Form 1040-NR, line 1z.
Earned income also includes any taxable distribution from a
qualified disability trust. A qualified disability trust is any nongrantor
trust:

The dividends were qualified dividends on stock given to her by her
grandparents.
Amanda's unearned income is $2,600. This is the total of the
dividends ($1,200), taxable interest ($1,300), and capital gains
reduced by capital losses ($300 − $200 = $100). Her wages are
earned (not unearned) income because they are received for work
actually performed. Her tax-exempt interest isn’t included because it
is nontaxable.

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Alternate Worksheet for Form 8615, Line 1

A.

Enter the amount from your child’s Form 1040 or
1040-NR, line 9 . . . . . . . . . . . . . . . . . . . . . . . .

B.

Enter the total of any net loss from self-employment,
any net operating loss deduction, any foreign earned
income exclusion, and any foreign housing exclusion
from your child’s Form 1040 or 1040-NR. Enter this
total as a positive number (greater than zero) . . . . .

C.

Add line A and line B and enter the total

D.

Enter your child’s earned income plus any amount from
your child’s Schedule 1 (Form 1040), line 18 . . . . . .

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

Generally, your child’s earned income is the total of the
amounts reported on Form 1040 or 1040-NR, line 1z;
and Schedule 1 (Form 1040), lines 3 and 6 (if Schedule
1 (Form 1040), line 3 or 6 is a loss, use zero)

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).

E.

A trust won’t fail to meet (2) above just because the trust’s corpus
may revert to a person who isn’t disabled after the trust ceases to
have any disabled beneficiaries.
Nontaxable income. For this purpose, unearned income
includes only amounts your child must include in gross income.
Nontaxable unearned income, such as tax-exempt interest and the
nontaxable part of social security and pension payments, isn’t
included in gross income.
Capital loss. Your child’s capital losses are taken into account in
figuring their unearned income. Capital losses are first applied
against capital gains. If the capital losses are more than the capital
gains, the difference (up to $3,000 ($1,500 in the case of a married
individual filing a separate return)) is subtracted from your child’s
interest, dividends, and other unearned income. Any difference over
$3,000 is carried to the next year.

Subtract line D from line C. Enter the result here and on
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . .

Trust income. If your child is the beneficiary of a trust,
distributions of taxable interest, dividends, capital gains, and other
unearned income from the trust are unearned income to your child.
However, taxable distributions from a qualified disability trust are
considered earned income for the purposes of completing Form
8615.
Adjustment to income. In figuring the amount to enter on line 1,
your child’s unearned income is reduced by any penalty on the early
withdrawal of savings.

Line 2

If the child doesn't itemize deductions on Schedule A (Form 1040),
enter $2,500 on line 2.
If the child itemizes deductions, enter on line 2 the larger of:
1. $1,250 plus the portion of the amount on Schedule A (Form
1040), line 17 (or Schedule A (Form 1040-NR), line 8), that is
directly connected with the production of the unearned income
on Form 8615, line 1; or

Child’s Unearned Income
Worksheet—Line 1
Keep for Your Records

2. $2,500.

1. Enter the amount from the child’s Form 1040 or 1040-NR,
line 9, whichever applies . . . . . . . . . . . . . . . . . . . .

Directly connected. Itemized deductions are directly connected
with the production of unearned income if they are for expenses to
produce or collect taxable income or to manage, conserve, or
maintain property held for producing income. These expenses
include custodian fees and service charges, service fees to collect
taxable interest and dividends, and certain investment counsel fees.
However, only certain directly connected expenses, such as
interest and deductible amortizable bond premiums, are deductible
in tax years 2018 through 2025.

2. Enter the child’s earned income (defined earlier) plus the
amount of any penalty on early withdrawal of savings from
the child’s Schedule 1 (Form 1040), line 18, whichever
applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Subtract line 2 from line 1. Enter the result here and on
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . .

Income from property received as a gift. Your child’s
unearned income includes all income produced by property
belonging to your child. This is true even if the property was
transferred to your child, regardless of when the property was
transferred or purchased or who transferred it.

!

For tax years 2018 through 2025, miscellaneous itemized
deductions are suspended and not deductible.

CAUTION

Example 1. Roger, age 12, has unearned income of $8,000, no
other income, no adjustments to income, and itemized deductions of
$300 that are directly connected with his unearned income. His
adjusted gross income is $8,000, which is entered on Form 1040,
line 11, and on Form 8615, line 1. Roger enters $2,500 on line 2
because that is more than the total of $1,250 plus his directly
connected itemized deductions of $300 ($1,550).

Example. Amanda Black, age 13, received the following
income.
• Dividends—$1,200.
• Wages—$2,100.
• Taxable interest—$1,300.
• Tax-exempt interest—$100.

Instructions for Form 8615

. . . . . . . .

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of all the other children's Forms 8615 being completed. (The term
"other child" means any other child whose Form 8615 uses the tax
information of the parent identified on lines A and B of Form 8615.)

Example 2. Eleanor, age 8, has unearned income of $16,000
and an early withdrawal penalty of $100. She has no other income.
She has itemized deductions of $1,300 that are directly connected
with the production of her unearned income. Her adjusted gross
income, entered on line 1, is $15,900 ($16,000 − $100). The amount
on line 2 is $2,550. This is the larger of:

Example. Paul and Jane Persimmon have three children,
Sharon, Jerry, and Mike, who must attach Form 8615 to their tax
returns. The children's net unearned income amounts on line 5 of
their Forms 8615 are:
• Sharon—$900,
• Jerry—$700, and
• Mike—$1,100.

1. $1,250 plus the $1,300 of directly connected itemized
deductions, or

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2. $2,500.

Line 3

Line 7 of Sharon's Form 8615 will show $1,800, the total of the
amounts on line 5 of Jerry's and Mike's Forms 8615.
Line 7 of Jerry's Form 8615 will show $2,000 ($900 + $1,100).
Line 7 of Mike's Form 8615 will show $1,600 ($900 + $700).

Subtract line 2 from line 1 and enter the result on this line. If zero or
less, don’t complete the rest of the form. However, you must still
attach Form 8615 to your child’s tax return. Figure the tax on your
child’s taxable income in the normal manner.

Line 8

Line 4

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, line 16. If Schedule D isn’t required, it is the amount on
Form 1040 or 1040-NR, line 7.
Qualified dividends. Qualified dividends are those dividends
reported on line 3a of Form 1040 or 1040-NR.

Enter on line 4 your child’s taxable income from Form 1040,
1040-SR, or 1040-NR, line 15.

Child files Form 2555. If the child files Form 2555 (relating to
foreign earned income), enter the amount from line 3 of the child's
Foreign Earned Income Tax Worksheet (in the Instructions for Form
1040), instead of the child's taxable income.

Line 5

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, the 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, the 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.
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 are 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,
earlier. (Don’t attach the other children's Forms 8615 to this child's
return.)

A child’s net unearned income can’t be more than their taxable
income. Enter on Form 8615, line 5, the smaller of line 3 or line 4.
This is the child’s unearned income.

If zero or less, don’t complete the rest of the form. However, you
must still attach Form 8615 to your child’s tax return. Figure the tax
on your child’s taxable income in the normal manner.

Figuring a Tentative Tax at the
Parent’s Tax Rate

The next step in completing Form 8615 is to figure a tentative tax on
the child's net unearned income at the parent's tax rate. The
tentative tax at the parent's tax rate is the difference between the tax
on the parent's taxable income figured with the child's net unearned
income (plus the net unearned income of any other child whose
Form 8615 includes the tax return information of that parent) and the
tax figured without it.
When figuring the tentative tax at the parent's tax rate on Form
8615, don’t refigure any of the exclusions, deductions, or credits on
the parent's return because of the child's net unearned income. For
example, don’t refigure the medical expense deduction.
Figure the tentative tax on Form 8615, lines 6 through 13.

Line 6

Enter on line 6 the amount from the parent's Form 1040, 1040-SR, or
1040-NR, line 15, even if your spouse isn't the child's parent. If the
parent's taxable income is zero or less, enter zero on line 6.
Parent files Form 2555. If the parent files Form 2555 to claim the
foreign earned income exclusion, housing exclusion, or housing
deduction, the Foreign Earned Income Tax Worksheet in the
Instructions for Form 1040 is used to figure the parent's tax. Enter
the amount from line 3 of the Foreign Earned Income Tax Worksheet
as the parent's taxable income, on line 6 of Form 8615.

Line 7

Note. The amount of any net capital gain or qualified dividends isn’t
separately reported on line 8. It is needed, however, when figuring
the tax on line 9.

If the tax return information of the parent is also used on any other
child's Form 8615, enter on line 7 the total of the amounts from line 5

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Instructions for Form 8615

Keep for Your Records

2023 Line 5 Worksheet #1

Use this worksheet only if line 2 of the child's Form 8615 is $2,500 and lines 3 and 5 are the same amount.
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three places).
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Divide line 2 by line 3. Enter the result as a decimal (rounded to at least three places).
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Multiply $2,500 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Multiply $2,500 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Qualified dividends on Form 8615, line 5. Subtract line 6 of this worksheet from line 1
(but don’t enter less than zero or more than the amount on Form 8615, line 5) . . . . . .

8.

9. Net capital gain on Form 8615, line 5. Subtract line 7 of this worksheet from line 2 (but
don’t enter less than zero or more than the excess of Form 8615, line 5, over line 8 of
this worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

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Instructions for Form 8615

-5-

Keep for Your Records

2023 Line 5 Worksheet #2

Use this worksheet only if line 2 of the child's Form 8615 is more than $2,500 and lines 3 and 5 of the child's Form
8615 are the same amount.
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

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2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three
places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. Enter the child's itemized deductions directly connected with the production of the
child's qualified dividends or net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

10. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Divide line 1 by line 10. Enter the result as a decimal (rounded to at least three places).
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Divide line 2 by line 10. Enter the result as a decimal (rounded to at least three places).
Don’t enter more than 1.000 minus the amount on line 11 . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Multiply $1,250 by line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13.

14. Multiply $1,250 by line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Qualified dividends on Form 8615, line 5. Subtract line 13 from line 9 (but don’t
enter less than zero or more than the amount on Form 8615, line 5) . . . . . . . . . . . . . . .

15.

16. Net capital gain on Form 8615, line 5. Subtract line 14 from line 8 (but don’t enter
less than zero or more than the excess of Form 8615, line 5, over line 15 of this
worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

-6-

Instructions for Form 8615

Keep for Your Records

2023 Line 5 Worksheet #3
Use this worksheet only if the child's Form 8615, line 5, is less than line 3.
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1.

2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2.

3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.

4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three
places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.

5. If the child itemized deductions, enter the child's itemized deductions directly
connected with the production of the income on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . .

5.

6. Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6.

7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7.

8. Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8.

9. Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9.

10. Enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. If 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11.

12. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Enter the child's adjusted gross income (Form 1040 or 1040-NR, line 11) . . . . . . . . . .

13.

14. Divide line 3 by line 13. Enter the result as a decimal (rounded to at least three places).
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

14.

15. Multiply line 12 by line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

15.

16. Multiply line 15 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16.

17. Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

17.

18. Qualified dividends on Form 8615, line 5. Subtract line 16 of this worksheet from
line 9. Enter the result here (but don’t enter less than zero or more than the amount on
Form 8615, line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

19. Net capital gain on Form 8615, line 5. Subtract line 17 of this worksheet from line 8
(but don’t enter less than zero or more than the excess of Form 8615, line 5, over
line 18 of this worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19.

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Line 9

also files Form 2555 or 2555-EZ, use Using the Schedule D Tax
Worksheet for line 9 tax, later, to figure the line 9 tax.

Figure the tax on the amount on line 8 using the Tax Table, the Tax
Computation Worksheet, the Qualified Dividends and Capital Gain
Tax Worksheet (in the Instructions for Form 1040, or the Instructions
for Form 1040-NR), the Schedule D Tax Worksheet (in the
Schedule D instructions), or Schedule J (Form 1040), as follows.
• If line 8 doesn’t include any net capital gain or qualified
dividends, use the Tax Table or Tax Computation Worksheet to
figure this tax. But if Schedule J is used to figure the tax on the
parent's return, use it to figure this tax.
• If line 8 includes any net capital gain or qualified dividends, use
the Qualified Dividends and Capital Gain Tax Worksheet to
figure this tax. For details, see the instructions for Form 8615,
line 9. However, if the child, the parent, or any other child has
28% rate gain or unrecaptured section 1250 gain, use the
Schedule D Tax Worksheet. But if Schedule J is used to figure
the tax on the parent's return, use it to figure this 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 the Foreign Earned Income Tax Worksheet was used to figure
the parent's tax, go to step 6. Otherwise, skip steps 6, 7, and 8
and go to step 9.

Child files Form 2555. If line 8 includes any net capital gain or
qualified dividends and the child, or any other child filing Form 8615,

Instructions for Form 8615

6. Determine whether there is a line 8 capital gain excess. To do
this, subtract from line 1 of this worksheet the amount on line 2c
-7-

b. Subtract (a) from the amount on line 1 of this Schedule D
Tax Worksheet.

of the parent's Foreign Earned Income Tax Worksheet. 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.

c. Subtract (b) from the amount on line 10 of this Schedule D
Tax Worksheet. 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.

7. If there is no line 8 capital gain excess skip step 8 and go to
step 9.

11. If there is no line 8 capital gain excess, skip step 12 below and
go to step 13.

8. If there is a line 8 capital gain excess, complete a second
Qualified Dividends and Capital Gain Tax Worksheet, in its
entirety using steps 1 through 7, and with the following
additional modifications.

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12. If there is a line 8 capital gain excess, complete a second
Schedule D Tax Worksheet as instructed above and in step 13
but in its entirety and with the following additional modifications.
(These modifications are to be made only for purposes of filling
out this additional Schedule D Tax Worksheet.)

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).

a. Reduce the amount you would otherwise enter on line 9
(but not below zero) by the line 8 capital gain excess.

9. Complete lines 5 through 25 following the worksheet
instructions. Use the parent's filing status to complete lines 6,
13, 22, and 24.

b. Reduce the amount you would otherwise enter on line 6
(but not below zero) by any of the line 8 capital gain excess
not used in (a) above.

Enter the amount from line 25 of the Qualified Dividends and
Capital Gain Tax Worksheet on Form 8615, line 9, and check the box
on that line. Don’t attach this worksheet to the child's return.

c. If the child, the parent, or any other child has 28% rate gain,
reduce the amount you would otherwise enter on line 8 of
Worksheet 1 for Line 11 of the Schedule D Tax
Worksheet—28% Rate Gain (Line 9 Tax), shown later, (but
not below zero) by the line 8 capital gain excess, and
refigure the amount on line 11 of this Schedule D Tax
Worksheet.

Using the Schedule D Tax Worksheet for line 9 tax. Use the
Schedule D Tax Worksheet (in the Schedule D instructions) to figure
the tax on line 9, if the child, the parent, or any other child has
unrecaptured section 1250 gain or 28% rate gain. If you must use
the Schedule D Tax Worksheet, first complete any Schedule D and
any actual Schedule D Tax Worksheet required for the child, the
parent, or any other child. Then, figure the line 9 tax using another
Schedule D Tax Worksheet. (Don’t attach this Schedule D Tax
Worksheet to the child’s return.)
Complete this Schedule D Tax Worksheet as follows.

d. If the child, the parent, or any other child has unrecaptured
section 1250 gain, reduce the amount you would otherwise
enter on line 8 of Worksheet 2 for Line 11 of the
Schedule D Tax Worksheet—Unrecaptured Section 1250
Gain (Line 9 Tax) (but not below zero) by the line 8 capital
gain excess not used in step 12c above, and refigure the
amount on line 11 of this Schedule D Tax Worksheet.

1. On line 1, enter the amount from Form 8615, line 8.

13. Complete lines 12 through 47 following the worksheet
instructions. On line 35, enter the smaller of (a) line 9 of this
worksheet; or (b) the total of the amounts, if any, on line 19 of all
Schedules D (Form 1040) filed by the child, the parent, or any
other child. Use the parent's filing status to complete lines 15,
44, and 46.

2. On line 2, enter the qualified dividends included on Form 8615,
line 8. (See the earlier discussion for Form 8615, line 8.)
3. On line 3, enter the total of the amounts, if any, on line 4g of all
Forms 4952 filed by the child, the parent, or any other child.
4. On line 4, enter the total of the amounts, if any, on line 4e of all
Forms 4952 filed by the child, the parent, or any other child. If
applicable, include instead the smaller amount entered on the
dotted line next to line 4e.

Enter the amount from line 47 of this Schedule D Tax Worksheet
on Form 8615, line 9, and check the box on that line. Don’t attach
this worksheet to the child’s return.
Figuring 28% rate gain (line 11). If the child, the parent, or any
other child has 28% rate gain, figure the amount of 28% rate gain
included in the net capital gain on Form 8615, line 8, using the
following worksheet.

5. On lines 5 and 6, follow the worksheet instructions.
6. On line 7, enter the net capital gain included on Form 8615,
line 8. (See the earlier discussion for line 8.)
7. On lines 8 through 10, follow the worksheet instructions.
8. On line 11, enter zero if neither the child, nor the parent, nor any
other child has unrecaptured section 1250 gain (Schedule D,
line 19) or 28% rate gain (Schedule D, line 18).
Otherwise, enter the amount of unrecaptured section 1250
gain and 28% rate gain included in the net capital gain on Form
8615, line 8. Figure these amounts as explained later under
Figuring unrecaptured section 1250 gain (line 11) and Figuring
28% rate gain (line 11).

4.

Worksheet 1 for Line 11 of the Schedule D Tax
Worksheet—28% Rate Gain (Line 9 Tax)
Enter the amount, if any, from your child’s Schedule D (Form
1040), line 18 . . . . . . . . . . . . . . . . . . . . . . .
If line 1 is zero or blank, skip lines 2 through 4, enter -0on line 5, and go to line 6.
Enter the amount, if any, from the last line of your child’s
completed Line 5 Worksheet. (See the line 8 instructions for
which Line 5 Worksheet to use.) . . . . . . . . . . . . . .
Enter the amount from line 2 of your child’s completed Line 5
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .
Divide line 2 by line 3. Enter the result as a decimal . . .

5.

Multiply line 1 by line 4

6.

If no other child has 28% rate gain, enter -0-. Otherwise,
repeat lines 1 through 5 above for each other child who has
28% rate gain and enter the total of the line 5 amounts for
those other children . . . . . . . . . . . . . . . . . . . .
Enter the amount, if any, from line 18 of the parent's
Schedule D (Form 1040) . . . . . . . . . . . . . . . . .
Add lines 5, 6, and 7. Also include this amount on the
Schedule D Tax Worksheet, line 11 . . . . . . . . . . . .

1.

2.

3.

9. If the Foreign Earned Income Tax Worksheet was used to figure
the parent's tax or the tax of any child, go to step 10 below.
Otherwise, skip steps 10, 11, and 12 below, and go to step 13.
10. Determine whether there is a line 8 capital gain excess as
follows.
a. Add the amounts on line 2c of all Foreign Earned Income
Tax Worksheets completed by the parent or any child for
whom Form 8615 is filed. (But, for each child, don’t add
more than the excess, if any, of the amount on line 5 of the
child's Form 8615 over the child’s taxable income on Form
1040 or 1040-NR, line 15.)

7.
8.

-8-

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

Instructions for Form 8615

Line 10

Figuring unrecaptured section 1250 gain (line 11). If the
child, the parent, or any other child has unrecaptured section 1250
gain, figure the amount of unrecaptured section 1250 gain included
in the net capital gain on Form 8615, line 8, using the following
worksheet.

4.

Worksheet 2 for Line 11 of the Schedule D
Tax Worksheet—Unrecaptured
Section 1250 Gain (Line 9 Tax)
Enter the amount, if any, from your child’s Schedule D,
line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 1 is zero or blank, skip lines 2 through 4, enter -0on line 5, and go to line 6.
Enter the amount, if any, from the last line of your child’s
completed Line 5 Worksheet. (See the line 8 instructions for
which Line 5 Worksheet to use.) . . . . . . . . . . . . . .
Enter the amount from line 2 of your child’s completed Line 5
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .
Divide line 2 by line 3. Enter the result as a decimal . . .

5.

Multiply line 1 by line 4 . . . . . . . . . . . . . . . . . . .

6.

If no other child has unrecaptured section 1250 gain,
enter -0-. Otherwise, repeat lines 1 through 5 for each other
child who has unrecaptured section 1250 gain and enter the
total of the line 5 amounts for those children . . . . . . .
Enter the amount, if any, from line 19 of the parent's
Schedule D (Form 1040) . . . . . . . . . . . . . . . . .
Add lines 5, 6, and 7. Also include this amount on the
Schedule D Tax Worksheet, line 11 . . . . . . . . . . . .

Enter on line 10 the amount from Form 1040, 1040-SR, or 1040-NR,
line 16. Don’t include the tax, if any, from Form 4972 or Form 8814 or
any tax from recapture of an education credit.

Parent files Form 2555. If the Foreign Earned Income Tax
Worksheet (in the Instructions for Form 1040) 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 16.

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1.

2.

3.

7.
8.

Line 11

Subtract line 10 from line 9 and enter the result on this line. This is
the tentative tax.
If line 7 is blank, skip lines 12a and 12b and enter the amount
from line 11 on line 13. Also skip the discussion for lines 12a and
12b that follows.

Lines 12a and 12b

If an amount is entered on line 7, divide the tentative tax shown on
line 11 among the children according to each child's share of the
total net unearned income. This is done on lines 12a, 12b, and 13.
Add the amount on line 7 to the amount on line 5 and enter the total
on line 12a. Divide the amount on line 5 by the amount on line 12a
and enter the result, as a decimal, on line 12b.
Example. In the earlier example under Line 7, Sharon's Form
8615 shows $1,800 on line 7. The amount entered on line 12a is
$2,700, the total of the amounts on lines 5 and 7 ($900 + $1,800).
The decimal on line 12b is 0.333, figured as follows and rounded to
three places.

Using Schedule J (Form 1040) for line 9 tax. If any farming or
fishing income is included on line 8, the tax may be less if you use
Schedule J. Use Schedule J to figure the line 9 tax on Form 8615 if
Schedule J is used to figure the tax on the parent's return. First
complete the actual Schedule J for the parent, then use another
Schedule J as a worksheet to figure the tax to enter on line 9 of Form
8615. (Don’t attach this worksheet to the child's return.)
Complete this worksheet Schedule J as follows.

$900

$2,700

Line 13

If an amount is entered on line 7, multiply line 11 by the decimal on
line 12b and enter the result on line 13. This is the child’s share of
the tentative tax.

1. On line 1, enter the amount from Form 8615, line 8.
2. On lines 2a, 2b, and 2c, enter the amounts from the parent's
Schedule J, lines 2a, 2b, and 2c.

Figuring the Child's Tax

The final step in figuring the child’s tax is to determine the larger of:

3. Complete line 3 following the Schedule J instructions.

1. The total of:

4. Complete line 4. If Form 8615, line 8, includes any net capital
gain, use the Qualified Dividends and Capital Gain Tax
Worksheet to figure the tax amount on this line.
For details on how to use the worksheet, see Using the
Qualified Dividends and Capital Gain Tax Worksheet for line 9
tax, except use the amount from line 3 of this worksheet
Schedule J (Form 1040) instead of the amount on Form 8615,
line 8.
However, if the child, the parent, or any other child has 28%
rate gain or unrecaptured section 1250 gain, use the
Schedule D Tax Worksheet. Follow the earlier instructions
under Using the Schedule D Tax Worksheet for line 9 tax,
except use the amount on line 3 of this worksheet Schedule J
(instead of the amount on Form 8615, line 8) in step 1, above.

a. The child’s share of the tentative tax based on the parent's
tax rate, plus
b. The tax on the child’s taxable income in excess of net
unearned income, figured at the child’s tax rate; or
2. The tax on the child’s taxable income, figured at the child’s tax
rate.
18.

This is the child’s tax. It is figured on Form 8615, lines 14 through

Line 14

If lines 4 and 5 of Form 8615 are the same, the child’s taxable
income isn’t more than the child’s net unearned income. Enter zero
on lines 14 and 15, and go to line 16. Also skip the rest of this
discussion and the discussion for line 15 that follows.

5. On lines 5 through 16, enter the amounts from the parent's
Schedule J, lines 5 through 16.
6. Complete lines 17 and 18 following the Schedule J (Form 1040)
instructions.

If lines 4 and 5 aren't the same, subtract line 5 from line 4 and
enter the result on line 14. Then, before completing line 15, you must
determine the amount of net capital gain and qualified dividends, if
any, included on line 14.

7. On lines 19 through 22, enter the amounts from the parent's
Schedule J, lines 19 through 22.

Net capital gain and qualified dividends on line 14. If the child
doesn’t have any net capital gain or qualified dividends, the amount
of the net capital gain and qualified dividends included on line 14 is
zero.
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

8. Complete line 23 following the Schedule J instructions.
Enter the amount from line 23 of this worksheet Schedule J on
Form 8615, line 9, and check the box on that line.

Instructions for Form 8615

= 0.333

-9-

Otherwise, see Worksheet 1 for Line 11 of the Schedule D
Tax Worksheet—28% Rate Gain (Line 9 Tax) and Worksheet 2
for Line 11 of the Schedule D Tax Worksheet—Unrecaptured
Section 1250 Gain (Line 9 Tax) under Using the Schedule D
Tax Worksheet for line 9 tax, earlier.
For each worksheet you complete, subtract line 5 of that
worksheet from line 1 of that worksheet, and include the result
on line 11 of this worksheet.

Line 5 Worksheet minus the amount from the last line of that
worksheet. (See the earlier discussion of line 8.)
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. (See the earlier discussion of line 8.)

Line 15

10. If the child isn’t filing Form 2555, skip steps 11, 12, and 13
below, and go to step 14. If the child is filing Form 2555, go to
step 11.

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.

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11. Determine whether there is a line 14 capital gain excess as
follows.

If line 14 includes any net capital gain or qualified dividends,

TIP 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
Using the Schedule D Tax Worksheet for line 15 tax, later, for
instructions on how to figure the line 15 tax.

a. Subtract from line 2c of your Foreign Earned Income Tax
Worksheet the excess, if any, of the amount on line 5 of the
child's Form 8615 over the child's taxable income on Form
1040 or 1040-NR, line 15.
b. Subtract (a) from the amount on line 14 of Form 8615.

Note. 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.
See Net capital gain and qualified dividends on line 14, earlier.

c. Subtract (b) from the amount on line 10 of this Schedule D
Tax Worksheet. If the result is more than zero, that amount
is the line 14 capital gain excess. If the result is zero or less,
there is no line 14 capital gain excess.

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.

12. If there is no line 14 capital gain excess, skip step 13 below and
go to step 14.
13. If there is a line 14 capital gain excess, complete a second
Schedule D Tax Worksheet as instructed above and in step 14
below but in its entirety and with the following additional
modifications. (These modifications are to be made only for
purposes of filling out this Schedule D Tax Worksheet.)

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.)

a. Reduce the amount you would otherwise enter on line 9
(but not below zero) by the line 14 capital gain excess.

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.)

b. Reduce the amount you would otherwise enter on line 6
(but not below zero) by any of the line 14 capital gain
excess not used in (a) above.

4. Complete line 4 following the worksheet instructions.

c. If the child has 28% rate gain, reduce the amount you
would otherwise enter on line 11, as figured in step 9, (but
not below zero) by the line 14 capital gain excess.

5. Complete lines 5 through 25 following the worksheet
instructions. Use the child's filing status to complete lines 6, 13,
22, and 24 of the worksheet.

d. If the child has unrecaptured section 1250 gain, reduce the
amount you would otherwise enter on line 11, as figured in
step 9, (but not below zero) by the line 14 capital gain
excess not used in (c) above.

Enter the amount from line 25 on line 15 of Form 8615 and check
the box on that line. Don’t attach this worksheet to the child's return.
Child files Form 2555. If line 14 includes any net capital gain or
qualified dividends and the child files Form 2555, see Using the
Schedule D Tax Worksheet for line 15 tax next for instructions on
how to figure the line 15 tax.

14. Complete lines 12 through 47 following the worksheet
instructions. Use the child's filing status to complete lines 15,
44, and 46.

Using the Schedule D Tax Worksheet for line 15 tax. Use the
Schedule D Tax Worksheet (in the Schedule D instructions) to figure
the line 15 tax if the child has unrecaptured section 1250 gain or
28% rate gain. Don’t attach this Schedule D Tax Worksheet to the
child’s return.
Complete this Schedule D Tax Worksheet as follows.

Enter the amount from line 47 of this Schedule D Tax Worksheet
on Form 8615, line 15, and check the box on that line. Don’t attach
this worksheet to your return.
Using Schedule J (Form 1040) for line 15 tax. If Schedule J
applies, use it as a worksheet to figure the tax to enter on Form
8615, line 15. On line 1 of this worksheet, enter the amount from
Form 8615, line 14. Complete lines 2a through 23 following the
Schedule J instructions. Use the child’s filing status to complete lines
4, 8, 12, and 16.
Enter the amount from line 23 of this worksheet Schedule J on
Form 8615, line 15, and check the box on that line. Don’t attach this
worksheet to the child’s return.

1. On line 1, enter the amount from Form 8615, line 14.
2. On line 2, enter the qualified dividends included on Form 8615,
line 14. (See the earlier discussion of line 14.)
3. Leave lines 3 through 5 blank.
4. Enter the amount from line 2 on line 6.

Line 16

5. On line 7, enter the net capital gain included on Form 8615,
line 14. (See the earlier discussion of line 14.)

Add lines 13 and 15 and enter the total on line 16. This is your child’s
tax figured at the parent's rate on net unearned income and the
child’s tax rate on other income.

6. Skip line 8.
7. Enter the amount from line 7 on line 9.

Line 17

8. Complete line 10, following the worksheet instructions.

Figure the tax on the amount on line 4. Use the Tax Table, the Tax
Computation Worksheet, the Qualified Dividends and Capital Gain
Tax Worksheet, the Schedule D Tax Worksheet, or the child’s actual

9. On line 11, enter zero if the child has no 28% rate gain
(Schedule D, line 18) or unrecaptured section 1250 gain
(Schedule D, line 19).
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Instructions for Form 8615

Schedule J (Form 1040), whichever applies. Enter the tax amount on
line 17. If the amount was figured using the Qualified Dividends and
Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, or
Schedule J, check the box on that line.

instructions in the footnote to the Foreign Earned Income Tax
Worksheet (in the Instructions for Form 1040).

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.

Enter on line 18 the larger of line 16 or line 17. Also enter this
amount on the child’s Form 1040 or 1040-NR, line 16. This is the
child’s tax.

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. If your child files Form 2555, don't enter the
amount from Form 8615, line 18, on the child's Form 1040 or
1040-NR, line 16. Instead, enter the amount from Form 8615,
line 18, on line 4 of the child's Foreign Earned Income Tax
Worksheet. Then complete the rest of the Foreign Earned Income
Tax Worksheet (in the Instructions for Form 1040) to figure the child’s
tax.

Line 18

TREASURY/IRS
AND OMB USE
ONLY DRAFT
November 13, 2023
Child files Form 2555. If your child files Form 2555 and has a net
capital gain or qualified dividends, figure the tax using the Qualified
Dividends and Capital Gain Tax Worksheet or the Schedule D Tax
Worksheet, whichever applies. To fill out that worksheet, follow the

Instructions for Form 8615

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