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Department of the Treasury

Internal Revenue Service

Instructions for Form 8615

(Rev. January 2008)

Tax for Children Under Age 18 With Investment Income of More Than $1,700

gain distributions, may be higher if this

If the parents were married but filed

General Instructions

election is made. For more details, see

separate returns, enter the name and

Form 8814, Parents’ Election To Report

SSN of the parent who had the higher

What’s New

Child’s Interest and Dividends.

taxable income. If you do not know

which parent had the higher taxable

This revision of the Instructions for

income, see Pub. 929.

Additional Information

Form 8615 reflects the Tax Technical

If the parents were unmarried,

Corrections Act of 2007, which has

For more details, see Pub. 929, Tax

treated as unmarried for federal income

changed the instructions for a child or

Rules for Children and Dependents.

tax purposes, or separated by either a

parent who files Form 2555 or 2555-EZ.

divorce or separate maintenance

See the instructions for lines 4, 6, 9, 10,

Incomplete Information

decree, enter the name and SSN of the

15, 17, and 18.

parent with whom the child lived for

for Parent or Other

Purpose of Form

most of the year (the custodial parent).

Children

Exceptions. If the custodial parent

For children under age 18, investment

If the parent’s taxable income or filing

remarried and filed a joint return with

income over $1,700 is taxed at the

his or her new spouse, enter the name

status or the net investment income of

parent’s rate if the parent’s rate is

and SSN of the person listed first on

the parent’s other children is not known

higher than the child’s. If the child’s

the joint return, even if that person is

by the due date of the child’s return,

investment income is more than

not the child’s parent. If the custodial

reasonable estimates can be used.

$1,700, use Form 8615 to figure the

parent and his or her new spouse filed

Enter “Estimated” next to the

child’s tax.

separate returns, enter the name and

appropriate line(s) of Form 8615. When

Investment Income

SSN of the person with the higher

the correct information is available, file

Form 1040X, Amended U.S. Individual

taxable income, even if that person is

For Form 8615, “investment income”

not the child’s parent.

Income Tax Return.

includes all taxable income other than

If the parents were unmarried but

earned income as defined on this page.

Instead of using estimates, the child

lived together during the year with the

Investment income includes taxable

can get an automatic 6-month

child, enter the name and SSN of the

interest, ordinary dividends, capital

extension of time to file. For details, see

parent who had the higher taxable

gains (including capital gain

Form 4868, Application for Automatic

income.

distributions), rents, royalties, etc. It

Extension of Time To File U.S.

also includes taxable social security

Individual Income Tax Return.

Line 1

benefits, pension and annuity income,

and income (other than earned income)

If the child had no earned income

Amended Return

received as the beneficiary of a trust.

(defined below), enter the child’s

If after the child’s return is filed, the

adjusted gross income from Form 1040,

parent’s taxable income changes or the

Who Must File

line 38; Form 1040A, line 22; or Form

net investment income of any of the

1040NR, line 36.

Form 8615 must be filed for any child

parent’s other children changes, the

who meets the following conditions.

If the child had earned income, use

child’s tax must be refigured using the

•

The child was under age 18 at the

the worksheet on page 2 to figure the

adjusted amounts. If the child’s tax

end of 2007. A child born on January 1,

amount to enter on line 1. But use Pub.

changes, file Form 1040X to correct the

1990, is considered to be age 18 at the

929 instead of the worksheet to figure

child’s tax.

end of 2007.

the amount to enter on line 1 if the

•

At least one of the child’s parents

child:

Alternative Minimum Tax

•

was alive at the end of 2007.

Files Form 2555 or 2555-EZ (relating

•

The child had more than $1,700 of

A child whose tax is figured on Form

to foreign earned income),

•

8615 may owe the alternative minimum

investment income.

Has a net loss from self-employment,

•

The child is required to file a tax

tax. For details, see Form 6251,

•

return.

Alternative Minimum Tax — Individuals,

Claims a net operating loss

•

The child does not file a joint return

and its instructions.

deduction.

for 2007.

Earned income. Earned income

Line Instructions

includes wages, tips, and other

The parent may be able to elect

payments received for personal

TIP

to report the child’s interest,

services performed. Generally, it is the

ordinary dividends, and capital

Lines A and B

total of the amounts reported on Form

gain distributions on the parent’s return.

1040, lines 7, 12, and 18; Form 1040A,

If the parent makes this election, the

If the child’s parents were married to

line 7; or Form 1040NR, lines 8, 13,

child will not have to file a return or

each other and filed a joint return, enter

and 19.

Form 8615. However, the federal

the name and social security number

income tax on the child’s income,

(SSN) of the parent who is listed first on

Earned income also includes any

including qualified dividends and capital

the joint return.

taxable distribution from a qualified

Cat. No. 28914R

Instructions For Form 8615 - Tax For Children Under Age 18 With Investment Income Of More Than 1700 D. - 2007

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