Instructions For Form 8615 - 2011 (Page 5 of 6) in pdf

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

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

using the Schedule D Tax Worksheet.

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

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

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

income (including certain amounts received in connection

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

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

10. If the child can claim his or her own

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

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

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

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

11. If the child itemized deductions, enter the

the tax.

child’s itemized deductions not directly

connected with the production of the income

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

on line 3. Otherwise, enter the child’s standard

any net capital gain or qualified dividends and the child or

deduction . . . . . . . . . . . . . . . . . . . . . . . . . .

any other child filing Form 8615 also files Form 2555 or

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

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

the line 9 tax.

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

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

Using the Qualified Dividends and Capital Gain Tax

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

Worksheet for line 9 tax. If you use the Qualified

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

Dividends and Capital Gain Tax Worksheet to figure the

decimal (rounded to at least three places). Do

line 9 tax, complete that worksheet as follows.

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

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

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

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

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

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

line 8.)

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

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

18. Qualified dividends on Form 8615, line 5.

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

Subtract line 16 from line 9. Enter the result

line 8.)

here (but do not enter less than zero or more

4. Complete line 4 following the worksheet

than the amount on Form 8615, line 5) . . . . .

instructions.

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

5. If you are completing the worksheet in the Form

Subtract line 17 from line 8 (but do not enter

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

less than zero or more than the excess of

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

Form 8615, line 5, over line 18 of this

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

worksheet) . . . . . . . . . . . . . . . . . . . . . . . . .

the worksheet instructions.

6. If the Foreign Earned Income Tax Worksheet was

Net capital gain or qualified dividends on line 6. If

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

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

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

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

step 10.

dividends, the full amount is the amount of qualified

7. Determine whether there is a line 8 capital gain

dividends included on line 6.

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

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

Net capital gain or qualified dividends on line 7.

Income Tax Worksheet. Subtract the result from line 6 of

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

this Qualified Dividends and Capital Gain Tax Worksheet

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

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

children’s Forms 8615. The qualified dividends included

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

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

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

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

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

Find these amounts for each other child as explained

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

under Net capital gain or qualified dividends on line 5

below and go to step 10.

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

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

Forms 8615 to this child’s return.)

second Qualified Dividends and Capital Gain Tax

Worksheet as instructed above and in step 10 below but

Line 9

in its entirety and with the following additional

Figure the tax using the Tax Table, Tax Computation

modifications.

Worksheet, Qualified Dividends and Capital Gain Tax

a. Reduce the amount you would otherwise enter on

Worksheet, Schedule D Tax Worksheet, or Schedule J

line 3 (but not below zero) by the line 8 capital gain

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

excess.

capital gain or qualified dividends, use the Qualified

b. Reduce the amount you would otherwise enter on

Dividends and Capital Gain Tax Worksheet in the Form

line 2 (but not below zero) by any of the line 8 capital

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

gain excess not used in (a) above.

unless you have to use the Schedule D Tax Worksheet

10. Complete lines 7 through 19 (lines 5 through 16 of

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

the worksheet in the Form 1040A instructions or lines 4

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

through 17 in the Form 1040NR instructions) following

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

the worksheet instructions. Use the parent’s filing status

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

to complete lines 8, 16, and 18 (lines 6, 14, and 16 of the

zero, use the Schedule D Tax Worksheet in the

worksheet in the Form 1040A or Form 1040NR

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

instructions).

-4-

Instructions for Form 8615 (2011)

Instructions For Form 8615 - 2011 Page 5

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