Form 8615 - Instructions (2015) (Page 2 of 8) in pdf

Instead of using estimates, the child can get an

If the child had earned income, use the Child's

automatic 6-month extension of time to file. For details,

Unearned Income Worksheet, later, to figure the amount

see Form 4868, Application for Automatic Extension of

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

Time To File U.S. Individual Income Tax Return.

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

child:

Amended Return

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

If the parent’s income changes after the child’s return is

income),

filed, the tax must be refigured using the adjusted

Has a net loss from self-employment, or

amounts. The child’s tax must also be refigured if there

Claims a net operating loss deduction.

are changes to the net unearned income of other children

Earned income. Earned income includes wages, tips,

for whom the parent is required to file a Form 8615. If the

and other payments received for personal services

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

performed.

tax.

If the child is a sole proprietor or a partner in a trade or

Alternative Minimum Tax

business in which both personal services and capital are

material income-producing factors, earned income also

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

includes a reasonable allowance for compensation for

alternative minimum tax. For details, see Form 6251,

personal services, but not more than 30% of the child's

Alternative Minimum Tax—Individuals, and its

share of the net profits from that trade or business (after

instructions.

subtracting the deduction for one-half of self-employment

Net Investment Income Tax

tax). However, the 30% limit does not apply if there are no

A child whose tax is figured on Form 8615 may be subject

net profits from the trade or business.

to the Net Investment Income Tax (NIIT). NIIT is a 3.8%

If capital is not an income-producing factor and the

tax on the lesser of net investment income or the excess

child's personal services produced the business income,

of the child's modified adjusted gross income (MAGI) over

all of the child's gross income from the trade or business

the threshold amount. Use Form 8960, Net Investment

is considered earned income. In that case, earned income

Income Tax, to figure this tax. For more information on

is generally the total of the amounts reported on Form

NIIT, go to

and enter “Net Investment Income

1040, lines 7, 12, and 18; Form 1040A, line 7; or Form

Tax” in the search box.

1040NR, lines 8, 13, and 19.

Earned income also includes any taxable distribution

Line Instructions

from a qualified disability trust. A qualified disability trust is

any nongrantor trust:

Lines A and B

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

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

established solely for the benefit of an individual under 65

a joint return, enter the name and social security number

years of age who is disabled, and

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

2. All the beneficiaries of which are determined by the

Commissioner of Social Security to have been disabled

If the parents were married but filed separate returns,

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

enter the name and SSN of the parent who had the higher

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

taxable income. If you do not know which parent had the

higher taxable income, see Pub. 929.

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 parents were unmarried, treated as unmarried for

after the trust ceases to have any disabled beneficiaries.

federal income tax purposes, or separated by either a

divorce or separate maintenance decree, enter the name

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

Child's Unearned Income

of the year (the custodial parent).

Worksheet—Line 1

Exceptions. If the custodial parent remarried and filed a

Keep for Your Records

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

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

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

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

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

line 23, whichever applies . . . . . . . . . . . . . . . .

parent and his or her new spouse filed separate returns,

2. Enter the child's earned income (defined earlier)

enter the name and SSN of the person with the higher

plus the amount of any penalty on early

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

withdrawal of savings from the child's Form 1040,

parent.

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

If the parents were unmarried but lived together during

applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

parent who had the higher taxable income.

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

Line 1

Line 2

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

the child's adjusted gross income from Form 1040,

If the child itemized deductions, enter the larger of:

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

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Instructions for Form 8615 (2015)

Form 8615 - Instructions (2015) Page 2

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