Form 8615 - Instructions (2015) (Page 7 of 8) in pdf

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

tax, enter the amount from line 4 of that worksheet,

instead of the parent's tax from Form 1040, line 44.

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

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

Line 15

line 8.)

Figure the tax using the Tax Table, Tax Computation

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

Worksheet, Qualified Dividends and Capital Gain Tax

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

Worksheet, Schedule D Tax Worksheet, or Schedule J,

line 8.)

whichever applies.

4. Complete line 4 following the worksheet

If line 14 includes any net capital gain or qualified

instructions.

dividends, use the Qualified Dividends and

TIP

5. If you are completing the worksheet in the Form

Capital Gain Tax Worksheet to figure this tax.

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

However, if the child has to file Schedule D and line 18 or

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

line 19 of the child's Schedule D is more than zero, use

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

the Schedule D Tax Worksheet to figure this tax instead.

the worksheet instructions.

See Pub. 929 for details on how to figure the line 15 tax

6. If the Foreign Earned Income Tax Worksheet was

using the Schedule D Tax Worksheet.

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

Otherwise, skip steps 7, 8, and 9 of these instructions

Before using the Qualified Dividends and Capital Gain

below, and go to step 10.

Tax Worksheet to figure the line 15 tax, you will need to

know the amount of net capital gain and qualified

7. Determine whether there is a line 8 capital gain

dividends, if any, included on line 14.

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

the amount on line 2c of the parent's Foreign Earned

Net capital gain and qualified dividends on line 14. If

Income Tax Worksheet. Subtract the result from line 6 of

the child does not have any net capital gain or qualified

this Qualified Dividends and Capital Gain Tax Worksheet

dividends, line 14 does not include any net capital gain or

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

qualified dividends.

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

If the child has net capital gain, the amount of net

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

capital gain included on line 14 is the amount from line 2

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

of the child's completed Line 5 Worksheet minus the

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

amount from the last line of that worksheet.

below and go to step 10.

If the child has qualified dividends, the amount of

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

qualified dividends included on line 14 is the amount from

second Qualified Dividends and Capital Gain Tax

line 1 of the child's completed Line 5 Worksheet minus the

Worksheet as instructed above and in step 10 below but

amount from the next to the last line of that worksheet.

in its entirety and with the following additional

Child files Form 2555 or 2555-EZ. If line 14 includes

modifications.

any net capital gain or qualified dividends and the child

a. Reduce the amount you would otherwise enter on

files Form 2555 or 2555-EZ, see Pub. 929 for instructions

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

on how to figure the line 15 tax.

excess.

Using the Qualified Dividends and Capital Gain Tax

b. Reduce the amount you would otherwise enter on

Worksheet for line 15 tax. If you use the Qualified

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

Dividends and Capital Gain Tax Worksheet to figure the

excess not used in (a) earlier.

line 15 tax, complete that worksheet as follows.

10. Complete lines 7 through 27 (lines 5 through 16 of

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

the worksheet in the Form 1040A instructions or lines 5

line 14.

through 25 in the Form 1040NR instructions) following the

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

worksheet instructions. Use the parent's filing status to

dividends included on Form 8615, line 14. (See

Net

complete lines 8, 15, 24, and 26 (lines 6, 13, and 15 of the

capital gain and qualified dividends on line

14, earlier.)

worksheet in the Form 1040A instructions or lines 6, 13,

22, and 24 of the worksheet in the Form 1040NR

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

instructions).

included on Form 8615, line 14. (See

Net capital gain and

qualified dividends on line

14, earlier.)

Enter the amount from line 27 of the Qualified

4. Complete line 4 following the worksheet

Dividends and Capital Gain Tax Worksheet (or line 16 of

instructions.

the worksheet in the Form 1040A instructions or line 25 of

the worksheet in the Form 1040NR instructions) on Form

5. If you are completing the worksheet in the Form

8615, line 9, and check the box on that line. Do not attach

1040 instructions, leave line 5 blank.

this worksheet to the child's return.

6. Complete lines 7 through 27 (lines 5 through 16 of

Line 10

the worksheet in the Form 1040A instructions or lines 5

through 25 of the worksheet in the Form 1040NR

If the parent filed a joint return, enter the tax shown on that

instructions) following the worksheet instructions. Use the

return even if the parent's spouse is not the child's parent.

child's filing status to complete lines 8, 15, 24, and 26 of

If the Foreign Earned Income Tax Worksheet (in the

the worksheet for Form 1040 (lines 6, 13, and 15 of the

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

-7-

Instructions for Form 8615 (2015)

Form 8615 - Instructions (2015) Page 7

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