Instructions For Form 8615 - 2011 (Page 3 of 6) in pdf

Amended Return

income-producing factor and the child’s personal services

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

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

income from the trade or business is considered earned

income changes or the net investment income of any of

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

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

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

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

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

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

19.

Alternative Minimum Tax

Earned income also includes any taxable distribution

from a qualified disability trust. A qualified disability trust

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

is any nongrantor trust:

alternative minimum tax. For details, see Form 6251,

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

Alternative Minimum Tax—Individuals, and its

established solely for the benefit of an individual under 65

instructions.

years of age who is disabled, and

Line Instructions

2. All the beneficiaries of which are determined by the

Commissioner of Social Security to have been disabled

for some part of the tax year within the meaning of 42

Lines A and B

U.S.C. 1382c(a)(3).

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

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

a joint return, enter the name and social security number

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

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

after the trust ceases to have any disabled beneficiaries.

If the parents were married but filed separate returns,

enter the name and SSN of the parent who had the

Child’s Investment Income

higher taxable income. If you do not know which parent

Worksheet — Line 1

had the higher taxable income, see Pub. 929.

Keep for Your Records

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

divorce or separate maintenance decree, enter the name

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

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

2. Enter the child’s earned income (defined

of the year (the custodial parent).

earlier) plus the amount of any penalty on

Exceptions. If the custodial parent remarried and filed a

early withdrawal of savings from the child’s

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

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

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

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

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

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

parent and his or her new spouse filed separate returns,

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

enter the name and SSN of the person with the higher

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

parent.

Line 2

If the parents were unmarried but lived together during

If the child itemized deductions, enter the larger of:

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

•

$1,900, or

parent who had the higher taxable income.

•

$950 plus the portion of the amount on Schedule A

(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 had earned income, use the worksheet on

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

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

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

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

child’s Foreign Earned Income Tax Worksheet (in the

enter on line 1 if the child:

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

•

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

income.

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

Earned income. Earned income includes wages, tips,

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

and other payments received for personal services

the child’s parent.

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 the

employer-equivalent portion of self-employment tax).

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

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

determine the amount of net capital gain and qualified

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

dividends included on this line before completing line 9.

-2-

Instructions for Form 8615 (2011)

Instructions For Form 8615 - 2011 Page 3

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