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disability trust. A qualified disability trust

Income Tax Worksheet, instead of the

3. Enter the amount from the

is any trust:

parent’s taxable income. (The parent

child’s Form 8615, line 1 . . . .

must use the Foreign Earned Income

1. Described in 42 U.S.C.

4. Divide line 1 by line 3. Enter

Tax Worksheet in Pub. 4655, not the

1396p(c)(2)(B)(iv) and established

the result as a decimal

worksheet on page 34 of the 2007

solely for the benefit of an individual

(rounded to at least three

Instructions for Form 1040.)

under 65 years of age who is disabled,

places). Do not enter more

and

than 1.000 . . . . . . . . . . . . . .

Line 8

2. All the beneficiaries of which are

5. Divide line 2 by line 3. Enter

determined by the Commissioner of

Enter on this line the total of lines 5, 6,

the result as a decimal

Social Security to have been disabled

and 7. You must determine the amount

(rounded to at least three

for some part of the tax year within the

of net capital gain and qualified

places). Do not enter more

meaning of 42 U.S.C. 1382c(a)(3).

dividends included on this line before

than 1.000 . . . . . . . . . . . . . .

completing line 9.

6. Multiply $1,700 by line 4 . . . .

A trust will not fail to meet (2) above

Net capital gain. Net capital gain is

just because the trust’s corpus may

7. Multiply $1,700 by line 5 . . . .

the smaller of the gain, if any, on

revert to a person who is not disabled

8. Qualified dividends on Form

Schedule D, line 15, or the gain, if any,

after the trust ceases to have any

8615, line 5. Subtract line 6

on Schedule D, line 16. If Schedule D is

disabled beneficiaries.

from line 1 (but do not enter

not required, it is the amount on line 13

less than zero or more than

of Form 1040, line 10 of Form 1040A,

Child’s Investment Income

the amount on Form 8615,

or line 14 of Form 1040NR.

Worksheet — Line 1

line 5) . . . . . . . . . . . . . . . . .

Keep for Your Records

Qualified dividends. Qualified

9. Net capital gain on Form

dividends are those dividends reported

8615, line 5. Subtract line 7

1. Enter the amount from the

on line 9b of Form 1040 or Form 1040A

from line 2 (but do not enter

child’s Form 1040, line 22;

or line 10b of Form 1040NR.

less than zero or more than

Form 1040A, line 15; or Form

the excess of Form 8615, line

Net capital gain and qualified

1040NR, line 23, whichever

5, over line 8 of this

applies . . . . . . . . . . . . . . . . .

dividends on line 8. If neither the

worksheet) . . . . . . . . . . . . . .

child, nor the parent, nor any other child

2. Enter the child’s earned

income (defined on page 1)

has net capital gain, the net capital gain

plus the amount of any penalty

on line 8 is zero.

on early withdrawal of savings

Line 5 Worksheet #2

If neither the child, nor the parent,

from the child’s Form 1040, line

Keep for Your Records

nor any other child has qualified

30, or Form 1040NR, line 29,

dividends, the amount of qualified

whichever applies . . . . . . . . .

dividends on line 8 is zero.

3. Subtract line 2 from line 1.

Use this worksheet only if line 2 of the

Enter the result here and on

If the child, parent, or any other child

child’s Form 8615 is more than $1,700 and

Form 8615, line 1 . . . . . . . . . .

has net capital gain, figure the amount

lines 3 and 5 are the same amount.

of net capital gain included on line 8 by

adding together the net capital gain

Line 2

1. Enter the child’s qualified

amounts included on lines 5, 6, and 7.

dividends . . . . . . . . . . . . . . .

If the child, parent, or any other child

If the child itemized deductions, enter

has qualified dividends, figure the

2. Enter the child’s net capital

the larger of:

•

amount of qualified dividends included

gain . . . . . . . . . . . . . . . . . .

$1,700, or

•

on line 8 by adding together the

$850 plus the portion of the amount

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

qualified dividend amounts included on

on Schedule A (Form 1040), line 29 (or

lines 5, 6, and 7. Use the following

4. Divide line 1 by line 3. Enter

Form 1040NR, Schedule A, line 17),

discussions to find these amounts.

the result as a decimal

that is directly connected with the

(rounded to at least three

production of the investment income on

Net capital gain or qualified

places) . . . . . . . . . . . . . . . .

Form 8615, line 1.

dividends on line 5. If the child has a

net capital gain or qualified dividends,

5. Enter the child’s itemized

Line 4

deductions directly connected

use the appropriate Line 5 Worksheet

with the production of the

on this page or page 3 to find the

If the child files Form 2555 or 2555-EZ

child’s qualified dividends or

amount of each included on line 5.

to claim the foreign earned income

net capital gain . . . . . . . . . . .

These worksheets are needed to adjust

exclusion or housing exclusion, enter

the child’s net capital gain and qualified

the amount from line 3 of the child’s

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

dividends by the appropriate allocated

Foreign Earned Income Tax

7. Subtract line 6 from line 5 . . .

amount of the child’s deductions.

Worksheet, instead of the child’s

8. Subtract line 7 from line 2 . . .

taxable income. (The Foreign Earned

Income Tax Worksheet that must be

9. Subtract line 6 from line 1 . . .

Line 5 Worksheet #1

used is the one in Pub. 4655, not the

Keep for Your Records

10. Enter the amount from the

worksheet on page 34 of the 2007

child’s Form 8615, line 1 . . . .

Instructions for Form 1040.)

11. Divide line 1 by line 10. Enter

Line 6

the result as a decimal

Use this worksheet only if line 2 of the

(rounded to at least three

If the parent filed a joint return, enter

child’s Form 8615 is $1,700 and lines 3 and

places). Do not enter more

5 are the same amount.

the taxable income shown on that

than 1.000 . . . . . . . . . . . . . .

return even if the parent’s spouse is not

the child’s parent.

1. Enter the child’s qualified

dividends . . . . . . . . . . . . . . .

If the Foreign Earned Income Tax

Worksheet was used to figure the

2. Enter the child’s net capital

parent’s tax, enter the amount from line

gain . . . . . . . . . . . . . . . . . .

3 of the parent’s Foreign Earned

-2-

Instructions For Form 8615 - Tax For Children Under Age 18 With Investment Income Of More Than 1700 D. - 2007 Page 2

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