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INSTRUCTIONS

STATE OF HAWAII—DEPARTMENT OF TAXATION

FORM N-615

INSTRUCTIONS FOR FORM N-615

(REV. 2006)

COMPUTATION OF TAX FOR CHILDREN UNDER AGE 14 WHO

HAVE INVESTMENT INCOME OF MORE THAN $1,000

General Instructions

Line-by-Line Instructions

formed. Generally, earned income is the total of

the amounts reported as wages, salaries, tips,

Note: The federal provisions in the Tax Increase

We have provided specific instructions for most

etc., business income (loss), and farm income

Prevention and Reconciliation Act of 2005 relat-

of the lines on the form. Those lines that do not

(loss) on federal Form 1040; Form N-12, lines 7

ing to minor children whose unearned income is

appear in these instructions are self-explana-

and 12b; Form N-13, line 7; or Form N-15, lines 7

taxed as if parent’s income has not been adopted

tory.

and 12.

for Hawaii income tax purposes at the present

Lines A and B. –– If the child's parents were

time.

Line 2. –– If the child itemized deductions on

married to each other and filed a joint return, en-

Form N-11, Form N-12, or Form N-15, enter on

Purpose of Form. –– For children under age 14,

ter the name and social security number of the

line 2 the greater of:

investment income (such as taxable interest and

parent who is listed first on the joint return. For

dividends) over $1,000 is taxed at the parent's

example, if the father's name is listed first on the

• $500 plus the portion of the amount on Form

rate if the parent's rate is higher than the child's

return and his social security number is entered

N-11, line 22; Form N-12, line 37; or Form

N-15, line 38, that is directly connected with

rate.

in the block labeled “Your social security num-

the production of the investment income on

ber,” enter his name on line A and his social se-

Do not use this form if the child's investment

Form N-615, line 1; OR

curity number on line B. If a parent is an alien and

income is $1,000 or less. Instead, figure the tax in

was issued an individual taxpayer identification

• $1,000

the normal manner on the child's income tax re-

number (ITIN) by the IRS, enter the ITIN. If the in-

turn. For example, if the child had $900 of taxable

Line 6. — Enter the taxable income shown on

dividual has applied for an ITIN but the IRS has

interest income and $200 of wages, Form N-615

the tax return of the parent identified on line A of

not yet issued the ITIN, write “Applied For”.

is not required to be completed and the child's tax

Form N-615. If the parent's taxable income is

should be figured on Form N-13 using the Tax

If the parents were married but filed separate

less than zero, enter zero on line 6. If the parent

Table.

returns, enter the name and social security num-

filed a joint return, enter the taxable income

ber of the parent who had the higher taxable in-

shown on the return even if the parent's spouse

If the child's investment income is more than

come. If you do not know which parent has the

is not the child's parent.

$1,000, use this form to see if any of the child's in-

higher taxable income, see federal Publication

vestment income is taxed at the parent's rate

Line 7. — If the individual identified as the parent

929.

and, if so, to figure the child's tax. For example, if

on this Form N-615 is also identified as the par-

the child had $1,100 of taxable interest income

If the parents were unmarried, treated as un-

ent on any other Form N-615, add the amounts, if

and $200 from wages, complete Form N-615 and

married for State income tax purposes, or sepa-

any, from line 5 on each of the other Forms

attach it to the child's Form N-13.

rated either by a divorce or separate mainte-

N-615 and enter the total on line 7.

nance decree, enter the name and social security

How To Obtain Tax Forms. –– To request tax

Line 9. — Figure the tax on the amount on line 8

number of the parent who had custody of the

forms by fax or mail, you may call 808-587-7572

using the Tax Table, Tax Rate Schedules, Capi-

child for most of the year (the custodial parent).

or toll-free at 1-800-222-7572.

tal Gains Tax Worksheet in the Instructions for

Exception: If the custodial parent remarried and

Form N-11/N-12 or Form N-15, or Form N-168,

Tax forms are also available on the Internet.

filed a joint return with his or her new spouse, en-

whichever applies. If any net capital gain is in-

The Department of Taxation's site on the Internet

ter the name and social security number of the in-

cluded on line 8, the tax on the amount on line 8

is:

dividual who is listed first on the joint return even

may be less if the Capital Gains Tax Worksheet

Investment Income. –– As used on this form,

if that individual is not the child's parent. If the

can be used to figure the tax. (See federal Publi-

“investment income” includes all taxable income

custodial parent and his or her new spouse filed

cation 929 for information on how to figure the

other than earned income as defined below. It in-

separate returns, enter the name and social se-

net capital gain included on line 8.) The Capital

cludes income such as taxable interest, ordinary

curity number of the person with the higher tax-

Gains Tax Worksheet should be used to figure

dividends, capital gains (including capital gain

able income, even if that person is not the child's

the tax if:

distributions), rents, royalties, etc. It also in-

parent.

the parent's

the amount on

cludes annuity income and income (other than

filing status

AND

Form N-615,

Note: If the parents were unmarried but lived to-

earned income) received as the beneficiary of a

line 8, is over

gether during the year with the child, enter the

trust.

name and social security number of the parent

• Single

$ 20,000

Who Must File. –– Generally, Form N-615 must

who had the higher taxable income.

be filed for any child who was under age 14 on

Line D. –– If the parent's filing status is married

• Married filing joint return

January 1, 2007, had more than $1,000 of invest-

filing separately and the parent claimed an ex-

or Qualifying widow(er)

ment income, and is required to file a tax return. If

emption for his or her spouse, write “Spouse” in

with dependent child

$ 40,000

neither parent was alive on December 31, 2006,

the space to the left of the box on line D.

do not use Form N-615. Instead, figure the child's

• Married filing separate

tax based on his or her own rate.

Line 1. –– If the child had no earned income (de-

$ 20,000

return

fined below), enter the child's adjusted gross in-

Note: The parent may be able to elect to report

come (from Form N-11, line 20; Form N-12, line

the child's interest, ordinary dividends, and capi-

• Head of household

$ 30,000

35; Form N-13, line 11; or Form N-15, line 35,

tal gain distributions on the parent's return. If the

Column B).

parent makes this election, the child will not have

If the Capital Gains Tax Worksheet is used to

to file a return or Form N-615. For more informa-

If the child had earned income, use the

figure the tax:

tion, see Instructions for Form N-11, Form N-12,

Worksheet on page 2 to figure the amount to en-

Enter on line 1 of the worksheet, the

or Form N-15 or get Form N-814, Parent's Elec-

ter on line 1. However, if the child had a net loss

amount from Form N-615, line 8;

tion To Report Child's Interest and Dividends.

from self-employment or claims a net operating

loss deduction, use the worksheet in federal Pub-

Enter on line 8 of the worksheet, the net

Additional Information. –– For more informa-

capital gain included on Form N-615, line

lication 929 instead of the one on page 2 to figure

tion about the tax on investment income of chil-

the amount to enter on Form N-615, line 1.

dren, get federal Publication 929, Tax Rules for

Complete the worksheet; and

Children and Dependents.

Earned Income includes wages, tips, and other

payments received for personal services per-

Instructions For Form N-615 - Computation Of Tax For Children Under Age 14 Who Have Investment Income Of More Than 1,000 - State Of Hawaii Department Of Taxation

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