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Line 9

Figure the tax using the Tax Table, Tax Computation

2011 Line 5 Worksheet #3

Worksheet, Qualified Dividends and Capital Gain Tax

Keep for Your Records

Worksheet, Schedule D Tax Worksheet, or Schedule J

(Form 1040), whichever applies. If line 8 includes any net

capital gain or qualified dividends, use the Qualified

Use this worksheet only if the child’s Form 8615, line 5, is less

Dividends and Capital Gain Tax Worksheet in the Form

than line 3.

1040, 1040A, or 1040NR instructions to figure the tax,

unless you have to use the Schedule D Tax Worksheet

1. Enter the child’s qualified dividends . . . . . . . .

or Schedule J (Form 1040) (see below).

2. Enter the child’s net capital gain . . . . . . . . . .

Schedule D Tax Worksheet. If the child, parent, or any

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

other child has to file Schedule D (Form 1040) and line

4. Divide line 1 by line 3. Enter the result as a

18 or 19 of any Schedule D (Form 1040) is more than

decimal (rounded to at least three places) . . .

zero, use the Schedule D Tax Worksheet in the

5. If the child itemized deductions, enter the

Instructions for Schedule D (Form 1040) to figure the tax.

child’s itemized deductions directly connected

See Pub. 929 for details on how to figure the line 9 tax

with the production of the income on line 3 . . .

using the Schedule D Tax Worksheet.

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

Schedule J (Form 1040). If any farming or fishing

7. Subtract line 6 from line 5 . . . . . . . . . . . . . . .

income (including certain amounts received in connection

with the Exxon Valdez litigation) is included on line 8, the

8. Subtract line 7 from line 2 . . . . . . . . . . . . . . .

tax may be less if you use Schedule J (Form 1040). If

9. Subtract line 6 from line 1 . . . . . . . . . . . . . . .

Schedule J (Form 1040) was used to figure the tax on the

10. If the child can claim his or her own

parent’s return, see Pub. 929 for details on how to figure

exemption, enter $3,700. Otherwise, enter -0-

the tax.

11. If the child itemized deductions, enter the

Child files Form 2555 or 2555-EZ. If line 8 includes

child’s itemized deductions not directly

any net capital gain or qualified dividends and the child or

connected with the production of the income

any other child filing Form 8615 also files Form 2555 or

shown on line 3 of this worksheet. Otherwise,

2555-EZ, see Pub. 929 for instructions on how to figure

enter the child’s standard deduction . . . . . . .

the line 9 tax.

12. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . .

Using the Qualified Dividends and Capital Gain Tax

13. Enter the child’s adjusted gross income (Form

Worksheet for line 9 tax. If you use the Qualified

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

1040NR, line 37) . . . . . . . . . . . . . . . . . . . . .

Dividends and Capital Gain Tax Worksheet to figure the

line 9 tax, complete that worksheet as follows.

14. Divide line 3 by line 13. Enter the result as a

decimal (rounded to at least three places). Do

1. On line 1, enter the amount from Form 8615, line 8.

not enter more than 1.000 . . . . . . . . . . . . . .

2. On line 2, enter the amount of qualified dividends

included on Form 8615, line 8. (See the instructions for

15. Multiply line 12 by line 14 . . . . . . . . . . . . . . .

line 8.)

16. Multiply line 15 by line 4 . . . . . . . . . . . . . . . .

3. On line 3, enter the amount of the net capital gain

17. Subtract line 16 from line 15 . . . . . . . . . . . . .

included on Form 8615, line 8. (See the instructions for

line 8.)

18. Qualified dividends on Form 8615, line 5.

4. Complete line 4 following the worksheet

Subtract line 16 of this worksheet from line 9.

instructions.

Enter the result here (but do not enter less

5. If you are completing the worksheet in the Form

than zero or more than the amount on Form

1040 instructions, enter on line 5 the total of the amounts,

8615, line 5) . . . . . . . . . . . . . . . . . . . . . . . .

if any, on line 4g of all Forms 4952 filed by the child,

19. Net capital gain on Form 8615, line 5.

parent, or any other child. Then complete line 6 following

Subtract line 17 of this worksheet from line 8

the worksheet instructions.

(but do not enter less than zero or more than

6. If the Foreign Earned Income Tax Worksheet was

the excess of Form 8615, line 5, over line 18

used to figure the parent’s tax, go to step 7 below.

of this worksheet) . . . . . . . . . . . . . . . . . . . .

Otherwise, skip steps 7, 8, and 9 below, and go to

step 10.

7. Determine whether there is a line 8 capital gain

Net capital gain or qualified dividends on line 6. If

excess. To do this, subtract from line 1 of the worksheet

the parent has a net capital gain, its full amount is the net

the amount on line 2 of the parent’s Foreign Earned

capital gain included on line 6. If the parent has qualified

Income Tax Worksheet. Subtract the result from line 6 of

dividends, the full amount is the amount of qualified

this Qualified Dividends and Capital Gain Tax Worksheet

dividends included on line 6.

(line 4 of the worksheet in the Form 1040A or Form

Net capital gain or qualified dividends on line 7.

1040NR instructions). If the result is more than zero, that

The net capital gain included on line 7 is the total of the

amount is the line 8 capital gain excess. If the result is

amounts of net capital gain included on line 5 of the other

zero or less, there is no line 8 capital gain excess.

children’s Forms 8615. The qualified dividends included

8. If there is no line 8 capital gain excess, skip step 9

on line 7 is the total of the amounts of qualified dividends

below and go to step 10.

included on line 5 of the other children’s Forms 8615.

9. If there is a line 8 capital gain excess, complete a

Find these amounts for each other child as explained

second Qualified Dividends and Capital Gain Tax

under Net capital gain or qualified dividends on line 5

Worksheet as instructed above and in step 10 below but

discussed earlier. (Do not attach the other children’s

in its entirety and with the following additional

Forms 8615 to this child’s return.)

modifications.

-4-

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 4

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