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Amended Return

the child’s personal services produced the business

income, all of the child’s gross income from the trade or

If after the child’s return is filed, the parent’s taxable

business is considered earned income. In that case,

income changes or the net investment income of any of

earned income is generally the total of the amounts

the parent’s other children changes, the child’s tax must

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

be refigured using the adjusted amounts. If the child’s tax

line 7; or Form 1040NR, lines 8, 13, and 19.

changes, file Form 1040X to correct the child’s tax.

Earned income also includes any taxable distribution

Alternative Minimum Tax

from a qualified disability trust. A qualified disability trust

is any nongrantor trust:

A child whose tax is figured on Form 8615 may owe the

1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and

alternative minimum tax. For details, see Form 6251,

Alternative Minimum Tax—Individuals, and its

established solely for the benefit of an individual under 65

instructions.

years of age who is disabled, and

2. All the beneficiaries of which are determined by the

Line Instructions

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).

Lines A and B

A trust will not fail to meet (2) above just because the

If the child’s parents were married to each other and filed

trust’s corpus may revert to a person who is not disabled

a joint return, enter the name and social security number

after the trust ceases to have any disabled beneficiaries.

(SSN) of the parent who is listed first on the joint return.

If the parents were married but filed separate returns,

Child’s Investment Income

enter the name and SSN of the parent who had the

Worksheet — Line 1

higher taxable income. If you do not know which parent

Keep for Your Records

had the higher taxable income, see Pub. 929.

If the parents were unmarried, treated as unmarried

1. Enter the amount from the child’s Form 1040,

for federal income tax purposes, or separated by either a

line 22; Form 1040A, line 15; or Form

1040NR, line 23, whichever applies . . . . . . .

divorce or separate maintenance decree, enter the name

and SSN of the parent with whom the child lived for most

2. Enter the child’s earned income (defined

earlier) plus the amount of any penalty on

of the year (the custodial parent).

early withdrawal of savings from the child’s

Exceptions. If the custodial parent remarried and filed a

Form 1040, line 30, or Form 1040NR, line 30,

joint return with his or her new spouse, enter the name

whichever applies . . . . . . . . . . . . . . . . . . . .

and SSN of the person listed first on the joint return, even

3. Subtract line 2 from line 1. Enter the result

if that person is not the child’s parent. If the custodial

here and on Form 8615, line 1 . . . . . . . . . . .

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

Line 2

parent.

If the child itemized deductions, enter the larger of:

If the parents were unmarried but lived together during

•

$1,900, or

the year with the child, enter the name and SSN of the

•

$950 plus the portion of the amount on Schedule A

parent who had the higher taxable income.

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

Line 1

17), that is directly connected with the production of the

investment income on Form 8615, line 1.

If the child had no earned income (defined on this page),

enter the child’s adjusted gross income from Form 1040,

Line 4

line 38; Form 1040A, line 22; or Form 1040NR, line 37.

If the child files Form 2555 or 2555-EZ (relating to foreign

If the child had earned income, use the worksheet on

earned income), enter the amount from line 3 of the

this page to figure the amount to enter on line 1. But use

child’s Foreign Earned Income Tax Worksheet (in the

Pub. 929 instead of the worksheet to figure the amount to

Form 1040 instructions), instead of the child’s taxable

enter on line 1 if the child:

income.

•

Files Form 2555 or 2555-EZ (relating to foreign earned

income),

Line 6

•

Has a net loss from self-employment, or

•

Claims a net operating loss deduction.

If the parent filed a joint return, enter the taxable income

shown on that return even if the parent’s spouse is not

Earned income. Earned income includes wages, tips,

the child’s parent.

and other payments received for personal services

performed. If the child is a sole proprietor or a partner in

If the Foreign Earned Income Tax Worksheet (in the

a trade or business in which both personal services and

Form 1040 instructions) was used to figure the parent’s

capital are material income-producing factors, earned

tax, enter the amount from line 3 of that worksheet,

income also includes a reasonable allowance for

instead of the parent’s taxable income.

compensation for personal services, but not more than

30% of the child’s share of the net profits from that trade

Line 8

or business (after subtracting the deduction for one-half

of self-employment tax). However, the 30% limit does not

Enter on this line the total of lines 5, 6, and 7. You must

apply if there are no net profits from the trade or

determine the amount of net capital gain and qualified

business. If capital is not an income-producing factor and

dividends included on this line before completing line 9.

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Instructions for Form 8615 (2010)

Instructions For Form 8615 - Tax For Certain Children Who Have Investment Income Of More Than 1,900 - Internal Revenue Service - 2010 Page 2

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