Looking for a Form 8615 Templates? Download it for free!

Amended Return

income from the trade or business is considered earned

income. In that case, earned income is generally the total

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

of the amounts reported on Form 1040, lines 7, 12, and

income changes or the net investment income of any of

18; Form 1040A, line 7; or Form 1040NR, lines 8, 13, and

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

19.

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

Earned income also includes any taxable distribution

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

from a qualified disability trust. A qualified disability trust

Alternative Minimum Tax

is any nongrantor trust:

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

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

established solely for the benefit of an individual under 65

alternative minimum tax. For details, see Form 6251,

years of age who is disabled, and

Alternative Minimum Tax—Individuals, and its

2. All the beneficiaries of which are determined by the

instructions.

Commissioner of Social Security to have been disabled

Line Instructions

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

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

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

after the trust ceases to have any disabled beneficiaries.

a joint return, enter the name and social security number

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

Child’s Investment Income

If the parents were married but filed separate returns,

Worksheet—Line 1

enter the name and SSN of the parent who had the

Keep for Your Records

higher taxable income. If you do not know which parent

had the higher taxable income, see Pub. 929.

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

If the parents were unmarried, treated as unmarried

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

for federal income tax purposes, or separated by either a

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

divorce or separate maintenance decree, enter the name

2. Enter the child’s earned income (defined

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

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

Line 2

taxable income, even if that person is not the child’s

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

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

Line 1

investment income on Form 8615, line 1.

If the child had no earned income (defined below), enter

Line 4

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

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

Investment Income Worksheet, later, to figure the amount

child’s Foreign Earned Income Tax Worksheet (in the

to enter on line 1. But use Pub. 929 instead of the

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

worksheet to figure the amount to enter on line 1 if the

income.

child:

Line 6

•

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

income),

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

•

Has a net loss from self-employment, or

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

•

Claims a net operating loss deduction.

the child’s parent.

Earned income. Earned income includes wages, tips,

If the Foreign Earned Income Tax Worksheet (in the

and other payments received for personal services

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

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

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

a trade or business in which both personal services and

instead of the parent’s taxable income.

capital are material income-producing factors, earned

income also includes a reasonable allowance for

Line 8

compensation for personal services, but not more than

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

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

determine the amount of net capital gain and qualified

or business (after subtracting the deduction for the

dividends included on this line before completing line 9.

employer-equivalent portion of self-employment tax).

Net capital gain. Net capital gain is the smaller of the

However, the 30% limit does not apply if there are no net

profits from the trade or business. If capital is not an

gain, if any, on Schedule D (Form 1040), line 15, or the

income-producing factor and the child’s personal services

gain, if any, on Schedule D (Form 1040), line 16. If

produced the business income, all of the child’s gross

Schedule D (Form 1040) is not required, it is the amount

-2-

Instructions for Form 8615 (2011)

Instructions For Form 8615 - Tax For Certain Children Who Have Investment Income Of More Than 1,900 - Internal Revenue Service - 2011 Page 2

Related Articles

Related forms

Related Categories