Department of the Treasury

Internal Revenue Service

Publication 929

Cat. No. 64349Y

Tax Rules for

Children and

Dependents

For use in preparing

2021 Returns

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Contents

What’s New .............................. 1

Future Developments ....................... 2

Reminders ............................... 2

Introduction .............................. 2

Part 1. Rules for All Dependents .............. 3

Filing Requirements ........................ 3

Should a Return Be Filed Even if Not 

Required? ............................. 5

Responsibility for Child's Return .............. 5

Standard Deduction ........................ 7

Dependent's Own Exemption ................. 8

Withholding From Wages .................... 8

Part 2. Tax on Unearned Income of Certain 

Children .............................. 9

Parents' Election To Report Child's Interest 

and Dividends (Form 8814) ............... 9

Tax for Certain Children Who Have Unearned 

Income (Form 8615) .................... 13

Glossary ................................ 23

How To Get Tax Help ...................... 25

Index .................................. 29

What’s New

Charitable contribution deduction. If you don’t itemize 

your deductions in 2021, you may qualify to take a charitable deduction for cash contributions of up to $300 ($600 in 

the case of a joint return). For more information see Pub. 

526, Charitable Contributions.

Standard deduction amounts increased. For 2021, 

the standard deduction amount has been increased for all 

filers. The amounts are:

• Single or Married filing separately—$12,550,

• Married filing jointly or Qualifying widow(er)—$25,100, 

and

• Head of household—$18,800.

For married taxpayers who are age 65 or over or blind, 

the standard deduction is increased an additional amount 

of $1,350 ($1,700 if head of household or single).

For individuals who can be claimed as a dependent, 

the standard deduction cannot exceed the greater of 

$1,100 or the sum of $350 and the individual's earned income but the total cannot exceed the applicable standard 

deduction for the dependent's filing status (including any 

additional amount for being age 65 or older and/or blind, if 

applicable).

Dec 29, 2021
Due to the increase in the standard deduction and reduced usage of itemized deductions, if you are employed, 

you may want to consider completing a new Form W-4, 

Employee's Withholding Certificate, and giving it to your 

employer.

Future Developments

For the latest information about developments related to 

Pub. 929, such as legislation enacted after it was 

published, go to IRS.gov/Pub929.

Reminders

Election to tax the unearned income of certain children at the parent’s tax rate. For tax years 2018 and 

2019, you can elect to calculate the tax on the unearned 

income of certain children using either the brackets and 

rates for estates and trusts or the parent’s tax rate. If you 

make this election for 2019, include a statement with your 

return specifying “election to modify tax on unearned income.” The statement can be made on the return (for example, on line 7 or at the top of Form 8615) or on an attachment filed with the return.

If you want to make this election for tax year 2018 or 

2019, you will need to file an amended return, Form 

1040-X. See IRS.gov/Form1040X for more information 

about amending a tax return. If you make this election, include a statement or an attachment with your amended 

return specifying “election to modify tax of unearned income.”

For more information, see Tax for Certain Children 

Who Have Unearned Income (Form 8615), later.

The alternative minimum tax (AMT) exemption 

amount no longer limited. For tax years beginning after 

2017, the AMT exemption amount for certain children with 

unearned income is no longer limited to their earned income plus the additional AMT exemption amount.

Taxpayer identification number (TIN). Dependents 

who are required to file a tax return must have a TIN. A 

TIN may be a social security number (SSN), an individual 

taxpayer identification number (ITIN), or an adoption taxpayer identification number (ATIN).

Social security number (SSN). The Social Security Administration (SSA) issues SSNs to citizens and nationals 

of the United States and to certain eligible aliens. To apply 

for an SSN, file Form SS-5, Application for a Social Security Card, with the SSA. You can go to SSA.gov for more 

information.

Individual taxpayer identification number (ITIN). The 

IRS will issue an ITIN to a nonresident or resident alien 

who doesn’t have and isn’t eligible to get an SSN. To apply for an ITIN, file Form W-7, Application for IRS Individual Taxpayer Identification Number, with the IRS. It takes 

6–10 weeks to get an ITIN. The ITIN is entered wherever 

an SSN is requested on a tax return. If you are a nonresident alien applying for an ITIN to file a tax return, you must 

generally attach your original, completed return to Form 

W-7 to get an ITIN. See the Form W-7 instructions for 

more information.

An ITIN is for tax use only. It doesn’t entitle you to social security benefits or change your employment or immigration status under U.S. law. If you were assigned an 

ITIN before January 1, 2013, or if you have an ITIN that 

you haven't included on a tax return in the last 3 consecutive years, you may need to renew it. For more information, see the Instructions for Form W-7.

Net investment income tax (NIIT). A child whose tax is 

figured on Form 8615 may be subject to the NIIT. See the 

Instructions for Form 8960, Net Investment Income 

Tax—Individuals, Estates, and Trusts, for more information.

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

Introduction

Part 1 of this publication explains the filing requirements 

and other tax information for individuals who can be 

claimed as a dependent on another person's tax return.

Part 2 explains how to report and figure the tax on unearned income of certain children (whether or not they can 

be claimed as dependents).

Definitions. Many of the terms used in this publication, 

such as “dependent,” “earned income,” and “unearned income,” are defined in the Glossary at the back of this publication.

Comments and suggestions. We welcome your comments about this publication and suggestions for future 

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue Service, Tax Forms and Publications, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or viewing the categories listed.

Page 2 Publication 929 (2021)
Getting tax forms, instructions, and publications. 

Go to IRS.gov/Forms to download current and prior-year 

forms, instructions, and publications.

Ordering tax forms, instructions, and publications. 

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order 

prior-year forms and instructions. The IRS will process 

your order for forms and publications as soon as possible. 

Don’t resubmit requests you’ve already sent us. You can 

get forms and publications faster online.

Useful Items

You may want to see:

Publication

Dependents, Standard Deduction, and Filing 

Information

Tax Withholding and Estimated Tax

Charitable Contributions

Investment Income and Expenses

Form (and Instructions)

Employee's Withholding Certificate

Tax for Certain Children Who Have Unearned 

Income

Parents' Election To Report Child's Interest 

and Dividends

See How To Get Tax Help near the end of this publication 

for information about getting these publications and forms.

Part 1.

Rules for All Dependents

Terms you may need to know 

(see Glossary):

Dependent

Earned income

Exemption

Gross income

Itemized deductions

Standard deduction

Unearned income

This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction, and 

whether a dependent can claim exemption from federal income tax withholding.

 501

 505

 526

 550

 W-4

 8615

 8814

Filing Requirements

Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is 

age 65 or older, or is blind.

A dependent may have to file a return even if his 

or her income is less than the amount that would 

normally require a return. See Other Filing Requirements, later.

The following sections apply to dependents with:

• Earned income only,

• Unearned income only, and

• Both earned and unearned income.

To find out whether a dependent must file, read the section that applies, or use Table 1.

Earned Income Only

A dependent whose gross income is only earned income 

must file a return if the gross income is more than the 

amount listed in the following table.

Marital Status Amount

Single

Under 65 and not blind ................... $12,550

Either 65 or older or blind .................. $14,250

65 or older and blind ..................... $15,950

Married*

Under 65 and not blind ................... $12,550

Either 65 or older or blind .................. $13,900

65 or older and blind ..................... $15,250

* If a dependent's spouse itemizes deductions on a separate return, the 

dependent must file a return if the dependent has $5 or more of gross 

income (earned and/or unearned).

Example. William is 16. His mother claims him as a 

dependent on her income tax return. He worked part time 

on weekends during the school year and full time during 

the summer. He earned $12,700 in wages. He didn't have 

any unearned income.

He must file a tax return because he has earned income only and his gross income is more than $12,550. If 

he is blind, he doesn't have to file a return because his 

gross income isn't more than $14,250.

Unearned Income Only

A dependent whose gross income is only unearned income must file a return if the gross income is more than 

the amount listed in the following table.

CAUTION

!

Publication 929 (2021) Page 3
Marital Status Amount

Single

Under 65 and not blind ................... $1,100

Either 65 or older or blind .................. $2,800

65 or older and blind ..................... $4,500

Married*

Under 65 and not blind ................... $1,100

Either 65 or older or blind .................. $2,450

65 or older and blind ..................... $3,800

* If a dependent's spouse itemizes deductions on a separate return, the 

dependent must file a return if the dependent has $5 or more of gross 

income (earned and/or unearned).

Example. Sarah is 18 and single. Her parents can 

claim her as a dependent on their income tax return. She 

received $1,970 of taxable interest and dividend income. 

She didn't work during the year.

She must file a tax return because she has unearned 

income only and her gross income is more than $1,100. If 

she is blind, she doesn't have to file a return because she 

has unearned income only and her gross income isn't 

more than $2,800.

Election to report child's unearned income on parent's return. A parent of a child under age 19 (or under 

age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. See Parents' Election To Report Child's Interest and Dividends in Part 2. If the parent makes this 

election, the child doesn’t have to file a return.

Both Earned and Unearned Income

A dependent who has both earned and unearned 

income must generally file a return if the dependent's gross income is more than line 5 of the following worksheet.

Filing Requirement Worksheet 

for Most Dependents 

1. Enter dependent's earned income plus $350 ....

2. Minimum amount ..................... $1,100

3. Compare lines 1 and 2. Enter the larger

amount ...........................

4. Maximum amount .................... 12,550

5. Compare lines 3 and 4. Enter the smaller

amount ...........................

6. Enter the dependent's gross income. If line 6 is 

more than line 5, the dependent must file an 

income tax return. If the dependent is married and 

his or her spouse itemizes deductions on a 

separate return, the dependent must file an 

income tax return if line 6 is $5 or more. .......

Example 1. Joe is 20, single, not blind, and a full-time 

college student. He doesn’t provide more than half of his 

own support, and his parents claim him as a dependent 

on their income tax return. He received $200 taxable interest income and earned $2,750 from a part-time job.

He doesn't have to file a tax return because his gross 

income of $2,950 ($200 interest plus $2,750 in wages) 

isn't more than $3,100, the amount on line 5 of his Filled-in 

Example 1, Filing Requirement Worksheet for Most Dependents.

Filled-in Example 1

Filing Requirement Worksheet 

for Most Dependents 

1. Enter dependent's earned income plus $350 .... $3,100

2. Minimum amount .................... 1,100

3. Compare lines 1 and 2. Enter the larger

amount ........................... 3,100

4. Maximum amount .................... 12,550

5. Compare lines 3 and 4. Enter the smaller

amount ........................... 3,100

6. Enter the dependent's gross income. If line 6 is 

more than line 5, the dependent must file an 

income tax return. If the dependent is married and 

his or her spouse itemizes deductions on a 

separate return, the dependent must file an 

income tax return if line 6 is $5 or more. ....... $ 2,950

Example 2. The facts are the same as in Example 1, 

except that Joe had $600 taxable interest income.

He must file a tax return because his gross income of 

$3,350 ($600 interest plus $2,750 wages) is more than 

$3,100, the amount on line 5 of his Filled-in Example 2 

worksheet.

Filled-in Example 2

Filing Requirement Worksheet

for Most Dependents

1. Enter dependent's earned income plus $350 .... $3,100

2. Minimum amount .................... 1,100

3. Compare lines 1 and 2. Enter the larger

amount ........................... 3,100

4. Maximum amount .................... 12,550

5. Compare lines 3 and 4. Enter the smaller

amount ........................... 3,100

6. Enter the dependent's gross income. If line 6 is 

more than line 5, the dependent must file an 

income tax return. If the dependent is married and 

his or her spouse itemizes deductions on a 

separate return, the dependent must file an 

income tax return if line 6 is $5 or more. ....... $ 3,350

Age 65 or older or blind. A dependent who is 

age 65 or older or blind must file a return if his or 

her gross income is more than line 7 of the following worksheet. 

Page 4 Publication 929 (2021)
Filing Requirement Worksheet 

for Dependents

Who Are Age 65 or Older or Blind

1. Enter dependent's earned income plus $350 .....

2. Minimum amount ...................... $1,100

3. Compare lines 1 and 2. Enter the larger amount . .

4. Maximum amount ...................... 12,550

5. Compare lines 3 and 4. Enter the smaller

amount ............................

6. Enter the amount from the following table that 

applies to the dependent ..................

Marital Status Amount

Single

Either 65 or older or blind $1,700

65 or older and blind $3,400

Married

Either 65 or older or blind $1,350

65 or older and blind $2,700

7. Add lines 5 and 6. Enter the total ............

8. Enter the dependent's gross income. If line 8 is more 

than line 7, the dependent must file an income tax 

return. If the dependent is married and his or her 

spouse itemizes deductions on a separate return, 

the dependent must file an income tax return if 

line 8 is $5 or more .....................

Example 3. The facts are the same as in Example 2, 

except that Joe is also blind. He doesn't have to file a return because his gross income of $3,350 isn’t more than 

$4,800, the amount on line 7 of his Filled-in Example 3 Filing Requirement Worksheet for Dependents Who Are Age 

65 or Older or Blind (shown next).

Filled-in Example 3

Filing Requirement Worksheet 

for Dependents

Who Are Age 65 or Older or Blind

1. Enter dependent's earned income plus $350 ..... $3,100

2. Minimum amount ...................... 1,100

3. Compare lines 1 and 2. Enter the larger amount . . 3,100

4. Maximum amount ...................... 12,550

5. Compare lines 3 and 4. Enter the smaller

amount ............................ 3,100

6. Enter the amount from the following table that 

applies to the dependent ................. 1,700

Marital Status Amount

Single

Either 65 or older or blind $1,700

65 or older and blind $3,400

Married

Either 65 or older or blind $1,350

65 or older and blind $2,700

7. Add lines 5 and 6. Enter the total ............ 4,800

8. Enter the dependent's gross income. If line 8 is 

more than line 7, the dependent must file an 

income tax return. If the dependent is married and 

his or her spouse itemizes deductions on a separate 

return, the dependent must file an income tax 

return if line 8 is $5 or more ................ $3,350

Other Filing Requirements

Some dependents may have to file a tax return even if 

their income is less than the amount that would normally 

require them to file a return.

A dependent must file a tax return if he or she owes any 

other taxes, such as:

• Social security and Medicare taxes on tips not reported to his or her employer or on wages received from 

an employer who didn’t withhold these taxes;

• Uncollected social security and Medicare or railroad 

retirement taxes on tips reported to his or her employer or on group-term life insurance;

• Alternative minimum tax;

• Additional tax on a health savings account from Form 

8889, Part III;

• Recapture taxes, such as the tax from recapture of an 

education credit; or 

• Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored 

account. But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by 

itself.

A dependent must also file a tax return if he or she:

• Had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt 

from employer social security and Medicare taxes, or

• Had net earnings from self-employment of at least 

$400.

Spouse itemizes. A dependent must file a return if the 

dependent's spouse itemizes deductions on a separate 

return and the dependent has $5 or more of gross income 

(earned and/or unearned).

Should a Return Be Filed Even 

if Not Required?

Even if a dependent doesn’t meet any of the filing requirements discussed earlier, he or she should file a tax return 

if either of the following applies.

• Income tax was withheld from his or her income.

• He or she qualifies for the earned income credit. See 

the tax return instructions to find out who qualifies for 

this credit.

By filing a return, the dependent can get a refund. 

Responsibility for Child's 

Return

Generally, a child is responsible for filing his or her own 

tax return and for paying any tax, penalties, or interest on 

Publication 929 (2021) Page 5
that return. If a child can’t file his or her own return for any 

reason, such as age, the child's parent, guardian, or other 

legally responsible person must file it for the child.

Signing the child's return. If the child can’t sign his or 

her return, a parent or guardian must sign the child's name 

followed by the words “By (signature), parent (or guardian) for minor child.”

Authority of parent or guardian. A parent or guardian 

who signs a return on a child's behalf can deal with the 

IRS on all matters connected with the return.

In general, a parent or guardian who doesn’t sign the 

child's return can only provide information concerning the 

child's return and pay the child's tax. That parent or guardian isn’t entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return.

Third party designee. A child's parent or guardian 

who doesn’t sign the child's return may be authorized, as 

a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. The child or the person signing the return 

on the child's behalf must check the “Yes” box in the Third 

Party Designee area of the return and name the parent or 

guardian as the designee.

If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. This designation doesn’t authorize the parent or 

guardian to receive any refund check, bind the child to any 

tax liability, or otherwise represent the child before the 

IRS. See the return instructions for more information.

Designated as representative. A parent or guardian 

who doesn’t sign the child's return may be designated as 

the child's representative by the child or the person signing the return on the child's behalf. Form 2848, Power of 

Attorney and Declaration of Representative, is used to 

designate a child's representative. See Pub. 947, Practice 

Before the IRS and Power of Attorney, for more information.

If designated, a parent or guardian can receive information about the child's return but can’t legally bind the child 

Table 1. 2021 Filing Requirements for Dependents

If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return.

See the definitions of “dependent,” “earned income,” “unearned income,” and “gross income” in the Glossary.

Single dependents—Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your unearned income was over $1,100.

• Your earned income was over $12,550.

• Your gross income was more than the larger of—

• $1,100, or

• Your earned income (up to $12,200) plus $350.

Yes. You must file a return if any of the following apply.

• Your unearned income was over $2,800 ($4,500 if 65 or older and blind).

• Your earned income was over $14,250 ($15,950 if 65 or older and blind).

• Your gross income was more than the larger of—

• $2,800 ($4,500 if 65 or older and blind), or

• Your earned income (up to $12,200) plus $2,050 ($3,750 if 65 or older and

blind).

Married dependents—Were you either age 65 or older or blind?

No. You must file a return if any of the following apply.

• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.

• Your unearned income was over $1,100.

• Your earned income was over $12,550.

• Your gross income was more than the larger of—

• $1,100, or

• Your earned income (up to $12,200) plus $350.

Yes. You must file a return if any of the following apply.

• Your gross income was at least $5 and your spouse files a separate return and itemizes deductions.

• Your unearned income was over $2,450 ($3,800 if 65 or older and blind).

• Your earned income was over $13,900 ($15,250 if 65 or older and blind).

• Your gross income was more than the larger of—

• $2,450 ($3,800 if 65 or older and blind), or

• Your earned income (up to $12,200) plus $1,700 ($3,050 if 65 or older and

blind).

Page 6 Publication 929 (2021)
to a tax liability unless authorized to do so by the law of 

the state in which the child lives.

IRS notice. If you or the child receives a notice from 

the IRS concerning the child's return or tax liability, you 

should immediately inform the IRS that the notice concerns a child. The notice will show who to contact. The 

IRS will try to resolve the matter with the parent(s) or 

guardian(s) of the child consistent with their authority.

Child's earnings. For federal income tax purposes, 

amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. This is true even if, under state law, 

the parent has the right to the earnings and may actually 

have received them.

If the child doesn’t pay the tax due on this income, the 

parent may be liable for the tax.

Child's expenses. Deductions for payments that are 

made out of a child's earnings are the child's, even if the 

payments are made by the parent.

Example. You made payments on your child's behalf 

that are deductible as a business expense and a charitable contribution. You made the payments out of your 

child's earnings. These items can be deducted only on the 

child's return.

Standard Deduction

The standard deduction for an individual who can be 

claimed as a dependent on another person's tax return is 

generally limited to the larger of:

1. $1,100; or

2. The individual's earned income plus $350, but not 

more than the regular standard deduction (generally 

$12,550).

However, the standard deduction may be higher for a dependent who:

• Is 65 or older, or

• Is blind.

Certain dependents can’t claim any standard deduction. See Standard Deduction of Zero, later.

Worksheet 1. Use Worksheet 1 to figure the dependent's 

standard deduction.

If you don’t itemize your deductions in 2021, you 

may qualify to take a charitable deduction of cash 

contributions of up to $300 ($600 in the case of a 

joint return). For more information see Pub. 526, Charitable Contributions.

TIP

Worksheet 1. Standard Deduction Worksheet for 

Dependents Keep for Your Records

Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. 

If you were 65 or older and/or blind, check the correct number of boxes below. Put the total number of boxes checked in box c and go to line 1.

a. You 65 or older Blind

b. Your spouse, if claiming 

spouse's exemption 65 or older Blind 

c. Total boxes checked

1. Enter your earned income* plus $350. If none, enter -0-. 1.

2. Minimum amount. 2. $1,100

3. Compare lines 1 and 2. Enter the larger of the two amounts here. 3.

4. Enter on line 4 the amount shown below for your filing status.

• Single or Married filing separately—$12,550

• Married filing jointly—$25,100

• Head of household—$18,800 4.

5. Standard deduction.

a. Compare lines 3 and 4. Enter the smaller amount here. If under 65 and not blind, stop here. This is your 

standard deduction. Otherwise, go on to line 5b.

5a.

b. If 65 or older or blind, multiply $1,700 ($1,350 if married) by the number in box c above. Enter the result here. 5b.

c. Add lines 5a and 5b. This is your standard deduction for 2021. 5c.

* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also 

includes any amount received as a scholarship that you must include in income.

Publication 929 (2021) Page 7
Example 1. Michael is single, age 15, and not blind. 

His parents can claim him as a dependent on their tax return. He has taxable interest income of $800 and wages of 

$150. He enters $500 (his earned income plus $350) on 

line 1 of Worksheet 1. On line 3, he enters $1,100, the 

larger of $500 or $1,100. Michael enters $12,550 on 

line 4. On line 5a, he enters $1,100, the smaller of $1,100 

or $12,550. His standard deduction is $1,100.

Example 2. Judy, a full-time student, is single, age 22, 

and not blind. Her parents can claim her as a dependent 

on their tax return. She has dividend income of $275 and 

wages of $2,500. She enters $2,850 (her earned income 

plus $350) on line 1 of Worksheet 1. On line 3, she enters 

$2,850, the larger of $2,850 or $1,100. She enters 

$12,550 on line 4. On line 5a, she enters $2,850 (the 

smaller of $2,850 or $12,550) as her standard deduction.

Example 3. Amy, who is single, is claimed as a dependent on her parent’s tax return. She is 18 years old 

and blind. She has taxable interest income of $1,100 and 

wages of $2,000. She enters $2,350 (her earned income 

plus $350) on line 1 of Worksheet 1. She enters $2,350 

(the larger of $2,350 or $1,100) on line 3, $12,550 on 

line 4, and $2,350 (the smaller of $2,350 or $12,550) on 

line 5a. Because Amy is blind, she checks the box for 

blindness and enters “1” in box c at the top of Worksheet 

1. She enters $1,700 (the number in box c times $1,700) 

on line 5b. Her standard deduction on line 5c is $4,050 

($2,350 + $1,700).

Standard Deduction of Zero

The standard deduction for the following dependents is 

zero.

• A married dependent filing a separate return whose 

spouse itemizes deductions.

• A dependent who files a return for a period of less 

than 12 months due to a change in his or her annual 

accounting period.

• A nonresident or dual-status alien dependent, unless 

the dependent is married to a U.S. citizen or resident 

alien at the end of the year and chooses to be treated 

as a U.S. resident for the year. See Pub. 519, U.S. 

Tax Guide for Aliens, for information on making this 

choice.

Example. Jennifer, who is a dependent of her parents, 

is entitled to file a joint return with her husband. However, 

her husband elects to file a separate return and itemize 

his deductions. Because he itemizes, Jennifer's standard 

deduction on her return is zero. She can, however, itemize 

any of her allowable deductions.

Dependent's Own Exemption

A person who can be claimed as a dependent on another 

taxpayer's return generally can’t claim his or her own 

exemption. This is true even if the other taxpayer doesn’t 

actually claim the exemption. However, for tax years 2018 

through 2025, the deduction for personal exemptions is 

suspended for a taxpayer, their spouse, and their dependents.

Withholding From Wages

Employers generally withhold federal income tax, social 

security tax, and Medicare tax from an employee's wages. 

If the employee claims exemption from withholding on 

Form W-4, the employer won't withhold federal income 

tax. The exemption from withholding doesn’t apply to social security and Medicare taxes.

Conditions for exemption from withholding. An employee can claim exemption from withholding for 2022 

only if he or she meets both of the following conditions.

1. For 2021, the employee had a right to a refund of all 

federal income tax withheld because he or she had no 

tax liability.

2. For 2022, the employee expects a refund of all federal 

income tax withheld because he or she expects to 

have no tax liability.

Dependents. An employee who is a dependent ordinarily 

can’t claim exemption from withholding if both of the following are true.

• The employee's gross income will be more than 

$1,150, the minimum standard deduction for 2022.

• The employee's unearned income will be more than 

$400.

Exceptions. An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee:

1. Is age 65 or older;

2. Is blind; or

3. Will claim on his or her 2022 tax return:

a. Adjustments to income,

b. Tax credits, or

c. Itemized deductions.

The above exceptions don’t apply to supplemental wages 

greater than $1 million. For more information, see Exemption From Withholding in chapter 1 of Pub. 505.

Example. Guy is 17 and a student. During the summer, he works part time at a grocery store. He expects to 

earn about $1,200 this year. He also worked at the store 

last summer and received a refund of all his withheld income tax because he didn't have a tax liability. The only 

other income he expects during the year is $375 interest 

on a savings account. He expects that his parents will be 

able to claim him as a dependent on their tax return. He 

isn't blind and won’t claim adjustments to income, 

Page 8 Publication 929 (2021)
itemized deductions, a higher standard deduction, or tax 

credits on his return.

Guy can’t claim exemption from withholding when he 

fills out Form W-4 because his parents will be able to 

claim him as a dependent, his gross income will be more 

than $1,150 (the 2022 minimum standard deduction 

amount), and his unearned income will be more than 

$400.

Claiming exemption from withholding. Beginning in 

2022, an employee may claim exemption from withholding 

if he or she owed no federal tax in 2021 and expects to 

owe no federal tax in 2022. To claim exemption from withholding, the employee must certify that he or she meets 

both conditions by writing "Exempt" on Form W-4 in the 

space below Step 4(c) and complete Steps 1 and 5. The 

employee must not complete any other steps on Form 

W-4. The Form W-4 must then be returned to the employee's employer.

Renewing an exemption from withholding. An exemption from withholding is good for only 1 year. An employee must file a new Form W-4 by February 15 to continue the exemption. 

Part 2. Tax on Unearned 

Income of Certain Children

Terms you may need to know 

(see Glossary):

Adjusted gross income

Adjustments to income

Alternative minimum tax

Capital gain distribution

Dependent

Earned income

Full-time student

Gross income

Itemized deductions

Net capital gain

Net unearned income

Qualified dividends

Standard deduction

Support

Tax year

Taxable income

Unearned income

Unrecaptured section 1250 gain

28% rate gain

The two rules that follow may affect the tax on the unearned income of certain children.

1. If the child's interest and dividend income (including 

capital gain distributions) total less than $11,000, the 

child's parent may be able to choose to include that 

income on the parent's return rather than file a return 

for the child. (See Parents' Election To Report Child's 

Interest and Dividends, later.)

2. If the child’s interest, dividends, and other unearned 

income total more than $2,200, the child’s income is 

taxed at special tax rates. (See Tax for Certain Children Who Have Unearned Income, later.)

For these rules, the term “child” includes a legally adopted child and a stepchild. These rules apply whether or 

not the child is a dependent.

These rules don’t apply if neither of the child's parents 

was living at the end of the year.

Parents' Election To Report 

Child's Interest and Dividends 

(Form 8814)

You may be able to elect to include your child's interest 

and dividend income (including capital gain distributions) 

on your tax return. If you do, your child won't have to file a 

return.

You can make this election only if all the following conditions are met.

• Your child was under age 19 (or under age 24 if a 

full-time student) at the end of the year.

• Your child had income only from interest and dividends (including capital gain distributions and Alaska 

Permanent Fund dividends).

• The child's gross income was less than $11,000.

• The child is required to file a return unless you make 

this election.

• The child doesn’t file a joint return for the year.

• No estimated tax payment was made for the year, and 

no overpayment from the previous year (or from any 

amended return) was applied to this year under your 

child's name and SSN.

• No federal income tax was withheld from your child's 

income under the backup withholding rules.

• You are the parent whose return must be used when 

applying the special tax rules for children. (See Which 

Parent's Return To Use, later.)

These conditions are also shown in Figure 1.

Certain January 1 birthdays. A child born on January 1, 

2003, is considered to be age 19 at the end of 2021. You 

can’t make this election for such a child unless the child 

was a full-time student.

Publication 929 (2021) Page 9
A child born on January 1, 1998, is considered to be 

age 24 at the end of 2021. You can’t make this election for 

such a child.

How to make the election. Make the election by attaching Form 8814 to your Form 1040, 1040-SR, or 1040-NR. 

Attach a separate Form 8814 for each child for whom you 

make the election. You can make the election for one or 

more children and not for others.

Figure 1. Can You Include Your Child's 

Income on Your Tax Return?

Start Here

No

Yes

Yes

Yes

Yes

Is your child ling a joint return for 2021?

No

No

Yes

No

No

No

No

Yes

Yes

No

Was the child’s gross income less than 

$11,000?

Yes

No

Yes

No

Yes

No

Yes

Was your child under age 19 at the end of 

2021?

Was your child under age 24 at the end of 

2021?

Was your child a full-time student in 2021?

Was the child’s only income from interest 

and dividends (including capital gain 

distributions and Alaska Permanent Fund 

dividends)?

Is your child required to le a tax return 

for 2021 if you don’t make this election?

Did the child make any estimated tax 

payments for 2021?

Did the child have an overpayment of tax 

on his or her 2020 return (or on any 

amended return) applied to the 2021 

estimated tax?

Was any federal income tax withheld from 

the child’s income under the backup 

withholding rules?

Are you the parent whose return must be 

used?*

You can include your child’s income on 

your tax return by completing Form 8814 

and attaching it to your return. If you do, 

your child isn’t required to le a return.

You can’t include 

your child’s income 

on your return.

* See Which Parent’s Return To Use.

Which Parent's Return To Use

If a child’s parents are married to each other and file a 

joint return, use the joint return when electing to report the 

Page 10 Publication 929 (2021)
child’s interest and dividend income on their return. For 

other situations when the parents do not file a joint return, 

see Parents Who Don't File a Joint Return next.

Parents Who Don’t File a Joint Return

For parents who don’t file a joint return and are electing to 

report the child’s interest and dividend income on their return, the following discussions explain which parent's tax 

return must be used to figure the tax.

Only the parent whose tax return is used can make the 

election described earlier under Parents' Election To Report Child's Interest and Dividends.

Parents are married. If the child's parents file separate 

returns, use the return of the parent with the greater taxable income.

Parents not living together. If the child's parents are 

married to each other but not living together, and the parent with whom the child lives (the custodial parent) is 

considered unmarried, use the return of the custodial parent. If the custodial parent isn’t considered unmarried, 

use the return of the parent with the greater taxable income.

For an explanation of when a married person living 

apart from his or her spouse is considered unmarried, see 

Head of Household in Pub. 501.

Parents are divorced. If the child's parents are divorced 

or legally separated, and the parent who had custody of 

the child for the greater part of the year (the custodial parent) hasn’t remarried, use the return of the custodial parent.

Custodial parent remarried. If the custodial parent 

has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Therefore, if the custodial parent and the stepparent file a joint 

return, use that joint return. Don’t use the return of the 

noncustodial parent.

If the custodial parent and the stepparent are married, 

but file separate returns, use the return of the one with the 

greater taxable income. If the custodial parent and the 

stepparent are married but not living together, the earlier 

discussion under Parents not living together applies.

Parents never married. If a child's parents have never 

been married to each other, but lived together all year, use 

the return of the parent with the greater taxable income. If 

the parents didn’t live together all year, the rules explained 

earlier under Parents are divorced apply.

Widowed parent remarried. If a widow or widower remarries, the new spouse is treated as the child's other parent. The rules explained earlier under Custodial parent 

remarried apply.

Effect of Making the Election

The federal income tax on your child's income may be 

more if you make the Form 8814 election.

Rate may be higher. If your child received qualified dividends or capital gain distributions, you may pay up to 

$110 more tax if you make this election instead of filing a 

separate tax return for the child. This is because the tax 

rate on the child's income between $1,100 and $2,200 is 

10% if you make this election. However, if you file a separate return for the child, the tax rate may be as low as 0% 

because of the preferential tax rates for qualified dividends and capital gain distributions.

Deductions you can’t take. By making the Form 8814 

election, you can’t take any of the following deductions 

that the child would be entitled to on his or her return.

• The additional standard deduction if the child is blind.

• The deduction for a penalty on an early withdrawal of 

your child's savings.

• Itemized deductions (such as your child's investment 

interest expenses or charitable contributions).

Deductible investment interest. If you use Form 8814, 

your child's unearned income is considered your unearned income. To figure the limit on your deductible investment interest, add the child's unearned income to 

yours. However, if your child received qualified dividends, 

capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Pub. 550 for information about 

how to figure the limit.

AMT. If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment 

company) from certain private activity bonds, you must 

determine if that interest is a tax preference item for AMT 

purposes. If it is, you must include it with your own tax 

preference items when figuring your AMT. See Form 

6251, Alternative Minimum Tax—Individuals, and its instructions for details.

NIIT. When figuring any NIIT liability on Form 8960, Net 

Investment Income Tax—Individuals, Estates, and Trusts, 

the amount on line 12 of Form 8814 (other than Alaska 

Permanent Fund dividends) will increase the amount of 

your net investment income reported on Form 8960. See 

the Form 8960 instructions for more information.

Reduced deductions or credits. If you use Form 8814, 

your increased adjusted gross income may reduce certain 

deductions or credits on your return, including the following.

• Deduction for contributions to a traditional IRA.

• Deduction for student loan interest.

• Itemized deductions for medical expenses and casualty and theft losses.

• Credit for child and dependent care expenses.

• Child tax credit.

• Education tax credits.

• Earned income credit.

Publication 929 (2021) Page 11
Penalty for underpayment of estimated tax. If you 

make this election for 2021 and didn’t have enough tax 

withheld or pay enough estimated tax to cover the tax you 

owe, you may be subject to a penalty. If you plan to make 

this election for 2022, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. See Pub. 505 for more information. 

Figuring Child's Income

Use Form 8814, Part I, to figure your child's interest and 

dividend income to report on your return. Only the amount 

over $2,200 is added to your income. The amount over 

$2,200 is shown on Form 8814, line 6. Unless the child's 

income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on 

Form 8814, line 12. Include the amount from Form 8814, 

line 12, on Schedule 1 (Form 1040), line 8z. If you file 

more than one Form 8814, include the total amounts from 

line 12 of all your Forms 8814 on Schedule 1 (Form 1040), 

line 8z. On the dotted line next to Schedule 1 (Form 

1040), line 8z, enter “Form 8814” and the total of the Form 

8814, line 12, amounts.

Note. The tax on the first $2,200 is figured on Form 

8814, Part II. See Figuring Additional Tax, later.

Qualified dividends. Enter on Form 8814, line 2a, any 

ordinary dividends your child received. This amount may 

include qualified dividends. Qualified dividends are those 

dividends reported on Form 1040, 1040-SR, or 1040-NR, 

line 3a, and are eligible for lower tax rates that apply to a 

net capital gain. For detailed information about qualified 

dividends, see Pub. 550.

If your child received qualified dividends, the amount of 

these dividends that is added to your income must be reported on Form 1040, 1040-SR, or 1040-NR, line 3a. You 

don’t include these dividends on Form 8814, line 12; or 

Schedule 1 (Form 1040), line 8z.

Enter the child's qualified dividends on Form 8814, 

line 2b. But don’t include this amount on Form 1040, 

1040-SR, or 1040-NR, line 3a. Instead, include the 

amount from Form 8814, line 9, on Form 1040, 1040-SR, 

or 1040-NR, line 3a. (The amount on Form 8814, line 9, 

may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,200 

base amount on Form 8814, line 5, between the child's 

qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those 

amounts.)

Capital gain distributions. Enter on Form 8814, line 3, 

any capital gain distributions your child received. The 

amount of these distributions that is added to your income 

must be reported on Schedule D (Form 1040), Capital 

Gains and Losses, line 13, or, if you aren’t required to file 

Schedule D, on Form 1040, 1040-SR, or 1040-NR, line 7. 

You don’t include it on Form 8814, line 12; or Schedule 1 

(Form 1040), line 8z.

Include the amount from Form 8814, line 10, on Schedule D, line 13; and Form 1040, 1040-SR, or 1040-NR, 

line 7, whichever applies. (The amount on Form 8814, 

line 10, may be less than the amount on Form 8814, 

line 3, because lines 7 through 12 of the form divide the 

$2,200 base amount on Form 8814, line 5, between the 

child's qualified dividends, capital gain distributions, and 

other interest and dividend income, reducing each of 

those amounts.)

Collectibles (28% rate) gain. If any of the child's 

capital gain distributions are reported on Form 1099-DIV 

as collectibles (28% rate) gain, you must determine how 

much to also include on line 4 of the 28% Rate Gain 

Worksheet in the instructions for Schedule D, line 18. Multiply the child's capital gain distribution included on 

Schedule D, line 13, by a fraction. The numerator is the 

part of the child's total capital gain distribution that is collectibles (28% rate) gain. The denominator is the child's 

total capital gain distribution. Enter the result on line 4 of 

the 28% Rate Gain Worksheet.

Unrecaptured section 1250 gain. If any of the child's 

capital gain distributions are reported on Form 1099-DIV 

as unrecaptured section 1250 gain, you must determine 

how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. Multiply the child's capital gain distribution 

included on Schedule D, line 13, by a fraction. The numerator is the part of the child's total capital gain distribution 

that is unrecaptured section 1250 gain. The denominator 

is the child's total capital gain distribution. Enter the result 

on the Unrecaptured Section 1250 Gain Worksheet, 

line 11.

Section 1202 gain. If any of the child's capital gain 

distributions are reported as section 1202 gain (gain on 

qualified small business stock) on Form 1099-DIV, part or 

all of that gain may be eligible for the section 1202 exclusion. (For information about the exclusion, see chapter 4 

of Pub. 550.) To figure that part, multiply the child's capital 

gain distribution included on Schedule D, line 13, by a 

fraction. The numerator is the part of the child's total capital gain distribution that is section 1202 gain. The denominator is the child's total capital gain distribution. Your section 1202 exclusion is generally 50% of the result, but may 

be subject to a limit. In some cases, the exclusion is more 

than 50%. See the Instructions for Schedule D for details 

and information on how to report the exclusion amount.

Example. Fred is 6 years old. In 2021, he received 

dividend income of $2,300, which included $1,725 of ordinary dividends and a $575 capital gain distribution from a 

mutual fund. (None of the distributions were reported on 

Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain.) All of the 

ordinary dividends are qualified dividends. He has no 

other income and isn’t subject to backup withholding. No 

estimated tax payments were made under his name and 

SSN.

Fred's parents elect to include Fred's income on their 

tax return instead of filing a return for him.

They figure the amount to report on Form 1040, lines 

3a and 3b, the amount to report on their Schedule D, 

Page 12 Publication 929 (2021)
line 13, and the amount to report on Schedule 1 (Form 

1040), line 8z, as follows.

They leave lines 1a and 1b of Form 8814 blank because Fred doesn’t have any interest income. They enter 

his ordinary dividends of $1,725 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. They enter the amount of Fred's capital gain distributions, $575, on line 3. Next, they add the amounts on 

lines 1a, 2a, and 3 and enter the result, $2,300, on line 4.

They subtract the base amount on line 5, $2,200, from 

the amount on line 4, $2,300, and enter the result, $100, 

on line 6. This is the total amount from Form 8814 to be 

reported on their return. Next, they figure how much of this 

amount is qualified dividends and how much is capital 

gain distributions.

• They divide the amount on line 2b, $1,725, by the 

amount on line 4, $2,300. They enter the result, 0.75, 

on line 7.

• They divide the amount on line 3, $575, by the amount 

on line 4, $2,300. They enter the result, 0.25, on line 8.

• They multiply the amount on line 6, $100, by the decimal on line 7, 0.75, and enter the result, $75, on line 9.

• They multiply the amount on line 6, $100, by the decimal on line 8, 0.25, and enter the result, $25, on 

line 10.

• They include the amount from line 9, $75, on lines 3a 

and 3b of their Form 1040 and enter “Form 8814 – 

$75” on the dotted lines next to lines 3a and 3b. They 

include the amount from line 10, $25, on line 13 of 

their Schedule D (Form 1040) and enter “Form 8814 – 

$25” on the dotted line next to Schedule D, line 13.

They enter $100 ($75 + $25) on line 11 and -0- ($100 – 

$100) on line 12. Because the amount on line 12 is -0-, 

they don’t include any amount from Form 8814 on their 

Schedule 1 (Form 1040), line 8z.

Figuring Additional Tax

Use Form 8814, Part II, to figure the tax on the $2,200 of 

your child's interest and dividends that you don’t include in 

your income. This tax is added to the tax figured on your 

income.

This additional tax is the smaller of:

1. 10% (0.10) x (your child's gross income − $1,100), or

2. $110.

Include the amount from line 15 of all your Forms 

8814 in the total on Form 1040, 1040-SR, or 

1040-NR, line 16. Check box 1 on Form 1040, 

1040-SR, or 1040-NR, line 16.

CAUTION

!

Tax for Certain Children Who 

Have Unearned Income (Form 

8615)

If your child's interest, dividends, and other unearned income total more than $2,200, and you don't or can't use 

Form 8814 to include your child's income on your return, 

your child will use Form 8615 to figure their tax. Attach the 

completed Form 8615 to your child's Form 1040 or 

1040-NR.

When Form 8615 must be filed. Your child must file 

Form 8615 if all of the following are true.

1. Their unearned income was more than $2,200.

2. They are required to file a return for 2021.

3. They were either:

a. Under age 18 at the end of the year,

b. Age 18 at the end of the year and didn’t have 

earned income that was more than half of his or 

her support, or

c. A full-time student at least age 19 and under age 

24 at the end of 2021 and didn’t have earned income that was more than half of his or her support.

4. At least one of their parents was alive at the end of 

2021.

5. They don’t file a joint return for 2021.

These conditions are also shown in Figure 2.

Certain January 1 birthdays. Use the following chart to 

determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be 

filed, earlier.

IF your child was born on... THEN, at the end of 2021, 

your child is considered to 

be...

January 1, 2004 18*

January 1, 2003 19**

January 1, 1998 24***

* Your child isn’t under age 18. Your child meets condition 3 only if 

your child didn’t have earned income that was more than half of his 

or her support.

** Your child meets condition 3 only if your child was a full-time 

student who didn’t have earned income that was more than half of 

his or her support.

*** Don’t use Form 8615 for your child.

Providing Parental Information

(Form 8615, Lines A–C)

On Form 8615, lines A and B, enter the parent's name and 

SSN. (If the parents filed a joint return, enter the name and 

Publication 929 (2021) Page 13
SSN listed first on the joint return.) On line C, check the 

box for the parent's filing status.

See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on 

Form 8615.

Parent with different tax year. If the parent and the 

child don’t have the same tax year, complete Form 8615 

using the information on the parent's return for the tax 

year that ends in the child's tax year.

Example. Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 

2021 (January 1–December 31). Kimberly's mother files 

her tax return on a fiscal year basis (July 1–June 30). Kimberly must use the information on her mother's return for 

the tax year ending June 30, 2021, to complete her 2021 

Form 8615.

Parent's return information not known timely. If the 

information needed from the parent's return isn’t known by 

the time the child's return is due (usually April 15), you can 

file the return using estimates.

You can use any reasonable estimate. This includes 

using information from last year's return. If you use an estimated amount on Form 8615, enter “Estimated” on the 

line next to the amount.

When you get the correct information, file an amended 

return on Form 1040-X, Amended U.S. Individual Income 

Tax Return.

Extension of time to file. Instead of using estimates, 

you can get an automatic 6-month extension of time to file 

if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. See the instructions for Form 

4868 for details.

An extension of time to file isn’t an extension of 

time to pay. You must make an accurate estimate 

of the tax for 2021. If you don't pay the full amount 

due by the regular due date, the child will owe interest and 

may also be charged penalties. See Form 4868 and its instructions.

CAUTION

!

Figure 2. Does Your Child Have To Use 

Form 8615 To Figure Their Tax?

Start Here

Yes

Yes

No

No

No

Yes

Yes

No

No

No

Yes

Yes

No

No

Yes

Yes

No

Yes

Was your child’s unearned 

income more than $2,200?

Did your child have earned income 

which was more than half of his or 

her support?

Was at least one of the child’s 

parents alive at the end of 2021?

Is your child ling a joint return 

for 2021?

Your child will use Form 8615 

to gure their tax and attach 

it to their return.

Note: If you choose to report 

your child’s income by ling 

Form 8814, your child isn’t 

required to le a tax return 

and will not use Form 8615. 

(See Parents’ Election To 

Report Child’s Interest and 

Dividends.)

Your child 

will not use 

Form 8615 

to gure 

their tax. 

Was your child under age 24 at

the end of 2021?

Was your child a full-time student 

in 2021?

Is your child required to le a tax 

return for 2021?

Was your child under age 18 at the 

end of 2021?

Was your child age 18 at the end

of 2021?

Page 14 Publication 929 (2021)
Parent's return information not available. If a child 

can’t get the required information about his or her parent's 

tax return, the child (or the child's legal representative) 

can request the necessary information from the IRS.

How to request. After the end of the tax year, send a 

signed, written request for the information to the Internal 

Revenue Service Center where the parent's return will be 

filed. (The IRS can’t process a request received before 

the end of the tax year.)

You should also consider getting an extension of 

time to file the child's return, because there may 

be a delay in getting the requested information.

The request must contain all of the following.

• A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and 

that you have tried to get the information from the parent.

• Proof of the child's age (for example, a copy of the 

child's birth certificate).

• Evidence the child has more than $2,200 of unearned 

income (for example, a copy of the child's prior year 

tax return or copies of Forms 1099 for the current 

year).

• The name, address, SSN (if known), and filing status 

(if known) of the parent whose information is to be 

shown on Form 8615.

A child's legal representative making the request 

should include a copy of his or her Power of Attorney, 

such as Form 2848, or proof of legal guardianship.

Step 1. Figuring Your Child's Net 

Unearned Income (Form 8615, Part I)

The first step in figuring your child’s tax using Form 8615 

is to figure your child’s net unearned income. To do that, 

use Form 8615, Part I.

Line 1 (Unearned Income)

If your child had no earned income, enter on this line the 

adjusted gross income shown on your child’s return. Adjusted gross income is shown on Form 1040 or 1040-NR, 

line 11.

If your child had earned income, figure the amount to 

enter on Form 8615, line 1, by using the worksheet in the 

instructions for the form.

However, use the following worksheet if your 

child:

• Has excluded any foreign earned income,

• Deducted a loss from self-employment, or

• Has a net operating loss from another year.

TIP

Alternate Worksheet

for Form 8615, Line 1

A. Enter the amount from your child’s Form 1040 

or 1040-NR, line 9 ..................

B. Enter the total of any net loss 

from self-employment, any net operating loss 

deduction, any foreign earned income 

exclusion, and any foreign housing exclusion 

from your child’s Form 1040 or 1040-NR. 

Enter this total as a positive number (greater 

than zero) .......................

C. Add line A and line B and 

enter the total ....................

D. Enter your child’s earned income plus any 

amount from your child’s Schedule 1 (Form 

1040), line 18 .....................

Generally, your child’s earned income is the 

total of the amounts reported on Form 1040 or 

1040-NR, line 1; and Schedule 1 (Form 1040), 

lines 3 and 6 (if Schedule 1 (Form 1040), 

line 3 or 6 is a loss, use zero)

E. Subtract line D from line C. Enter the result 

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

Unearned income defined. Unearned income is generally all income other than salaries, wages, and other 

amounts received as pay for work actually performed. It 

includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from 

trusts, and unemployment compensation. Unearned income includes amounts produced by assets your child 

obtained with earned income (such as interest on a savings account into which you deposited wages).

Nontaxable income. For this purpose, unearned income includes only amounts your child must include in 

gross income. Nontaxable unearned income, such as 

tax-exempt interest and the nontaxable part of social security and pension payments, isn’t included in gross income.

Capital loss. Your child’s capital losses are taken into 

account in figuring their unearned income. Capital losses 

are first applied against capital gains. If the capital losses 

are more than the capital gains, the difference (up to 

$3,000) is subtracted from your child’s interest, dividends, 

and other unearned income. Any difference over $3,000 is 

carried to the next year.

Income from property received as a gift. Your 

child’s unearned income includes all income produced by 

property belonging to your child. This is true even if the 

property was transferred to your child, regardless of when 

the property was transferred or purchased or who transferred it.

Your child’s unearned income includes income produced by property given as a gift to your child. This includes gifts to your child from grandparents or any other 

Publication 929 (2021) Page 15
person and gifts made under the Uniform Gift to Minors 

Act.

Example. Amanda Black, age 13, received the following income.

• Dividends—$1,000.

• Wages—$2,100.

• Taxable interest—$1,200.

• Tax-exempt interest—$100.

• Capital gains—$300.

• Capital losses—($200).

The dividends were qualified dividends on stock given to 

her by her grandparents.

Amanda's unearned income is $2,300. This is the total 

of the dividends ($1,000), taxable interest ($1,200), and 

capital gains reduced by capital losses ($300 − $200 = 

$100). Her wages are earned (not unearned) income because they are received for work actually performed. Her 

tax-exempt interest isn’t included because it is nontaxable.

Trust income. If your child is the beneficiary of a trust, 

distributions of taxable interest, dividends, capital gains, 

and other unearned income from the trust are unearned 

income to your child.

However, taxable distributions from a qualified disability trust are considered earned income for the purposes of 

completing Form 8615. See the Form 8615 instructions 

for details.

Adjustment to income. In figuring the amount to enter on line 1, your child’s unearned income is reduced by 

any penalty on the early withdrawal of savings.

Line 2 (Deductions)

If the child doesn't itemize deductions on Schedule A 

(Form 1040), enter $2,200 on line 2.

If the child itemizes deductions, enter on line 2 the 

larger of:

1. $1,100 plus the portion of the amount on Schedule A 

(Form 1040), line 17 (or Schedule A (Form 1040-NR), 

line 8), that is directly connected with the production 

of the unearned income on Form 8615, line 1; or

2. $2,200.

Directly connected. Itemized deductions are directly 

connected with the production of unearned income if they 

are for expenses to produce or collect taxable income or 

to manage, conserve, or maintain property held for producing income. These expenses include custodian fees 

and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees.

However, only certain directly connected expenses, 

such as interest and deductible amortizable bond premiums, are deductible in tax years 2018 through 2025.

Example 1. Roger, age 12, has unearned income of 

$8,000, no other income, no adjustments to income, and 

itemized deductions of $300 that are directly connected 

with his unearned income. His adjusted gross income is 

$8,000, which is entered on Form 1040, line 11, and on 

Form 8615, line 1. Roger enters $2,200 on line 2 because 

that is more than the total of $1,100 plus his directly connected itemized deductions of $300.

Example 2. Eleanor, age 8, has unearned income of 

$16,000 and an early withdrawal penalty of $100. She has 

no other income. She has itemized deductions of $1,200 

that are directly connected with the production of her unearned income. Her adjusted gross income, entered on 

line 1, is $15,900 ($16,000 − $100). The amount on line 2 

is $2,300. This is the larger of:

1. $1,100 plus the $1,200 of directly connected itemized 

deductions; or

2. $2,200.

Line 3

Subtract line 2 from line 1 and enter the result on this line. 

If zero or less, don’t complete the rest of the form. However, you must still attach Form 8615 to your child’s tax return. Figure the tax on your child’s taxable income in the 

normal manner.

Line 4 (Child’s Taxable Income)

Enter on line 4 your child’s taxable income from Form 

1040 or 1040-NR, line 15.

Child files Form 2555. If your child files Form 2555 (relating to foreign earned income), your child will use the 

Foreign Earned Income Tax Worksheet (in the Instructions for Form 1040) to figure their tax. Enter the amount 

from line 3 of the Foreign Earned Income Tax Worksheet 

as their taxable income on Form 8615, line 4.

Line 5 (Net Unearned Income)

A child’s net unearned income can’t be more than his or 

her taxable income. Enter on Form 8615, line 5, the 

smaller of line 3 or line 4. This is the child’s unearned income.

If zero or less, don’t complete the rest of the form. However, you must still attach Form 8615 to your child’s tax return. Figure the tax on your child’s taxable income in the 

normal manner.

Step 2. Figuring a Tentative Tax at the 

Parent’s Tax Rate (Form 8615, Part II)

The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's 

tax rate. The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income 

figured with the child's net unearned income (plus the net 

Page 16 Publication 929 (2021)
unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the 

tax figured without it.

When figuring the tentative tax at the parent's tax rate 

on Form 8615, don’t refigure any of the exclusions, deductions, or credits on the parent's return because of the 

child's net unearned income. For example, don’t refigure 

the medical expense deduction.

Figure the tentative tax on Form 8615, lines 6 through 

13.

Line 6 (Parent's Taxable Income)

Enter on line 6 the amount from the parent's Form 1040, 

1040-SR, or 1040-NR, line 15, even if your spouse isn't 

the child's parent. If the parent's taxable income is zero or 

less, enter zero on line 6.

Parent files Form 2555. If the parent files Form 2555 to 

claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income 

Tax Worksheet in the Instructions for Form 1040 is used 

to figure the parent's tax. Enter the amount from line 3 of 

the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615.

Line 7 (Net Unearned Income of Other 

Children)

If the tax return information of the parent is also used on 

any other child's Form 8615, enter on line 7 the total of the 

amounts from line 5 of all the other children's Forms 8615 

being completed. (The term "other child" means any other 

child whose Form 8615 uses the tax information of the parent identified on lines A and B of Form 8615.)

Example. Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 

8615 to their tax returns. The children's net unearned income amounts on line 5 of their Forms 8615 are:

• Sharon—$800,

• Jerry—$600, and

• Mike—$1,000.

Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 

8615.

Line 7 of Jerry's Form 8615 will show $1,800 ($800 + 

$1,000).

Line 7 of Mike's Form 8615 will show $1,400 ($800 + 

$600).

Other children's information not available. If the net 

unearned income of the other children isn't available when 

the return is due, either file the return using estimates or 

get an extension of time to file. Estimates and extensions 

are discussed earlier under Providing Parental Information 

(Form 8615, Lines A–C).

Line 8 (Parent's Taxable Income Plus 

Children’s Net Unearned Income)

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

determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, 

line 9.

Net capital gain. Net capital gain is the smaller of the 

gain, if any, on Schedule D (Form 1040), line 15, or the 

gain, if any, on Schedule D, line 16. If Schedule D isn’t required, it is the amount on Form 1040 or 1040-NR, line 7.

Qualified dividends. Qualified dividends are those 

dividends reported on Form 1040 or 1040-NR, line 3a.

Net capital gain and qualified dividends on line 8. If 

neither the child, nor the parent, nor any other child has 

net capital gain, the net capital gain on line 8 is zero.

If neither the child, nor the parent, nor any other child 

has qualified dividends, the amount of qualified dividends 

on line 8 is zero.

If the child, the parent, or any other child has net capital 

gain, figure the amount of net capital gain included on 

line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615.

If the child, the parent, or any other child has qualified 

dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend 

amounts included on lines 5, 6, and 7 of Form 8615.

Use the instructions for Form 8615, line 8, including the 

appropriate Line 5 Worksheet, to find these amounts. See 

the Instructions for Form 8615 for more details.

Note. The amount of any net capital gain or qualified 

dividends isn’t separately reported on line 8. It is needed, 

however, when figuring the tax on line 9.

Line 9 (Tax on Parent's Taxable Income Plus 

Children's Net Unearned Income)

Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Instructions for Form 1040, or the Instructions for Form 

1040-NR), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows.

• If line 8 doesn’t include any net capital gain or qualified dividends, use the Tax Table or Tax Computation 

Worksheet to figure this tax. But if Schedule J is used 

to figure the tax on the parent's return, use it to figure 

this tax.

• If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain 

Tax Worksheet to figure this tax. For details, see the 

instructions for Form 8615, line 9. However, if the 

child, the parent, or any other child has 28% rate gain 

or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. But if Schedule J is used to figure the tax on the parent's return, use it to figure this 

tax.

Publication 929 (2021) Page 17
Child files Form 2555. If line 8 includes any net capital 

gain or qualified dividends and the child, or any other child 

filing Form 8615, also files Form 2555, see Using the 

Schedule D Tax Worksheet for line 9 tax next to figure the 

line 9 tax.

Using the Schedule D Tax Worksheet for line 9 tax.

Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the tax on line 9, if the child, the parent, or any other child has unrecaptured section 1250 

gain or 28% rate gain. If you must use the Schedule D Tax 

Worksheet, first complete any Schedule D and any actual 

Schedule D Tax Worksheet required for the child, the parent, or any other child. Then, figure the line 9 tax using 

another Schedule D Tax Worksheet. (Don’t attach this 

Schedule D Tax Worksheet to the child’s return.)

Complete this Schedule D Tax Worksheet as follows.

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

2. On line 2, enter the qualified dividends included on 

Form 8615, line 8. (See the earlier discussion for 

Form 8615, line 8.)

3. On line 3, enter the total of the amounts, if any, on 

line 4g of all Forms 4952 filed by the child, the parent, 

or any other child.

4. On line 4, enter the total of the amounts, if any, on 

line 4e of all Forms 4952 filed by the child, the parent, 

or any other child. If applicable, include instead the 

smaller amount entered on the dotted line next to 

line 4e.

5. On lines 5 and 6, follow the worksheet instructions.

6. On line 7, enter the net capital gain included on Form 

8615, line 8. (See the earlier discussion for line 8.)

7. On lines 8 through 10, follow the worksheet instructions.

8. On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 

1250 gain (Schedule D, line 19) or 28% rate gain 

(Schedule D, line 18). Otherwise, enter the amount of 

unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on Form 8615, line 8. 

Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11).

9. If the Foreign Earned Income Tax Worksheet was 

used to figure the parent's tax or the tax of any child, 

go to step 10 below. Otherwise, skip steps 10, 11, 

and 12 below, and go to step 13.

10. Determine whether there is a line 8 capital gain excess as follows.

a. Add the amounts on line 2c of all Foreign Earned 

Income Tax Worksheets completed by the parent 

or any child for whom Form 8615 is filed. (But, for 

each child, don’t add more than the excess, if any, 

of the amount on line 5 of the child's Form 8615 

over the child’s taxable income on Form 1040 or 

1040-NR, line 15.)

b. Subtract (a) from the amount on line 1 of this 

Schedule D Tax Worksheet.

c. Subtract (b) from the amount on line 10 of this 

Schedule D Tax Worksheet. If the result is more 

than zero, that amount is the line 8 capital gain excess. If the result is zero or less, there is no line 8 

capital gain excess.

11. If there is no line 8 capital gain excess, skip step 12 

below and go to step 13.

12. If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above 

and in step 13 but in its entirety and with the following 

additional modifications. (These modifications are to 

be made only for purposes of filling out this additional 

Schedule D Tax Worksheet.)

a. Reduce the amount you would otherwise enter on 

line 9 (but not below zero) by the line 8 capital 

gain excess.

b. Reduce the amount you would otherwise enter on 

line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above.

c. If the child, the parent, or any other child has 28% 

rate gain, reduce the amount you would otherwise 

enter on line 8 of Worksheet 1 for Line 11 of the 

Schedule D Tax Worksheet—28% Rate Gain 

(Line 9 Tax), shown later, (but not below zero) by 

the line 8 capital gain excess, and refigure the 

amount on line 11 of this Schedule D Tax Worksheet.

d. If the child, the parent, or any other child has unrecaptured section 1250 gain, reduce the amount 

you would otherwise enter on line 8 of Worksheet 

2 for Line 11 of the Schedule D Tax Worksheet—Unrecaptured Section 1250 Gain (Line 9 

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

excess not used in step 12c above, and refigure 

the amount on line 11 of this Schedule D Tax 

Worksheet.

13. Complete lines 12 through 47 following the worksheet 

instructions. On line 35, enter the smaller of (a) line 9 

of this worksheet; or (b) the total of the amounts, if 

any, on line 19 of all Schedules D (Form 1040) filed 

by the child, the parent, or any other child. Use the 

parent's filing status to complete lines 15, 44, and 46.

Enter the amount from line 47 of this Schedule D Tax 

Worksheet on Form 8615, line 9, and check the box on 

that line. Don’t attach this worksheet to the child’s return.

Figuring 28% rate gain (line 11). If the child, the parent, or any other child has 28% rate gain, figure the 

amount of 28% rate gain included in the net capital gain 

on Form 8615, line 8, using the following worksheet.

Page 18 Publication 929 (2021)
Worksheet 1 for Line 11 of the Schedule D 

Tax Worksheet—28% Rate Gain 

(Line 9 Tax)

 1. Enter the amount, if any, from your child’s 

Schedule D (Form 1040), line 18 ...........

If line 1 is zero or blank, skip lines 2 through 

4, enter -0- on line 5, and go to line 6.

 2. Enter the amount, if any, from the last line of your 

child’s completed Line 5 Worksheet in the 

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

instructions for which Line 5 Worksheet to 

use.) .............................

 3. Enter the amount from line 2 of your child’s 

completed Line 5 Worksheet .............

 4. Divide line 2 by line 3. Enter the result as a 

decimal ...........................

 5. Multiply line 1 by line 4 .................

 6. If no other child has 28% rate gain, enter -0-. 

Otherwise, repeat lines 1 through 5 above for 

each other child who has 28% rate gain and enter 

the total of the line 5 amounts for those other 

children ...........................

 7. Enter the amount, if any, from line 18 of the 

parent's Schedule D (Form 1040) ...........

 8. Add lines 5, 6, and 7. Also include this amount on 

the Schedule D Tax Worksheet, line 11 .......

Figuring unrecaptured section 1250 gain (line 11).

If the child, the parent, or any other child has unrecaptured section 1250 gain, figure the amount of unrecaptured section 1250 gain included in the net capital gain on 

Form 8615, line 8, using the following worksheet.

Worksheet 2 for Line 11 of the Schedule D 

Tax Worksheet—Unrecaptured 

Section 1250 Gain

(Line 9 Tax)

1. Enter the amount, if any, from your child’s 

Schedule D, line 19 ....................

If line 1 is zero or blank, skip lines 2 through 

4, enter -0- on line 5, and go to line 6.

2. Enter the amount, if any, from the last line of your 

child’s completed Line 5 Worksheet in the 

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

instructions for which Line 5 Worksheet to use.) . .

3. Enter the amount from line 2 of your child’s 

completed Line 5 Worksheet ..............

4. Divide line 2 by line 3. Enter the result as a 

decimal ...........................

5. Multiply line 1 by line 4 ..................

6. If no other child has unrecaptured section 1250 

gain, enter -0-. Otherwise, repeat lines 1 through 5 

for each other child who has unrecaptured section 

1250 gain and enter the total of the line 5 amounts 

for those children .....................

7. Enter the amount, if any, from line 19 of the 

parent's Schedule D (Form 1040) ...........

8. Add lines 5, 6, and 7. Also include this amount on 

the Schedule D Tax Worksheet, line 11 .......

Using Schedule J (Form 1040) for line 9 tax. Use 

Schedule J to figure the line 9 tax on Form 8615 if Schedule J is used to figure the tax on the parent's return. First 

complete the actual Schedule J for the parent, then use 

another Schedule J as a worksheet to figure the tax to enter on line 9 of Form 8615. (Don’t attach this worksheet to 

the child's return.)

Complete this worksheet Schedule J as follows.

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

2. On lines 2a, 2b, and 2c, enter the amounts from the 

parent's Schedule J, lines 2a, 2b, and 2c.

3. Complete line 3 following the Schedule J instructions.

4. Complete line 4. If Form 8615, line 8, includes any net 

capital gain, use the Qualified Dividends and Capital 

Gain Tax Worksheet to figure the tax amount on this 

line.

 For details on how to use the worksheet, see the instructions for Form 8615, line 9, in the Instructions for 

Form 8615, but use the amount from line 3 of this 

worksheet Schedule J (instead of the amount on 

Form 8615, line 8).

However, if the child, the parent, or any other child 

has 28% rate gain or unrecaptured section 1250 gain, 

use the Schedule D Tax Worksheet. Follow the earlier 

instructions under Using the Schedule D Tax Worksheet for line 9 tax, except use the amount on line 3 of 

this worksheet Schedule J (instead of the amount on 

Form 8615, line 8) in step 1.

Publication 929 (2021) Page 19
5. On lines 5 through 16, enter the amounts from the parent's Schedule J, lines 5 through 16.

6. Complete lines 17 and 18 following the Schedule J 

(Form 1040) instructions.

7. On lines 19 through 22, enter the amounts from the 

parent's Schedule J, lines 19 through 22.

8. Complete line 23 following the Schedule J instructions.

Enter the amount from line 23 of this worksheet Schedule J on Form 8615, line 9, and check the box on that line.

Line 10 (Parent's Tax)

Enter on line 10 the amount from Form 1040, 1040-SR, or 

1040-NR, line 16. Don’t include the tax, if any, from Form 

4972 or Form 8814 or any tax from recapture of an education credit.

If you file Form 2555, enter the amount from line 4 of 

your Foreign Earned Income Tax Worksheet (in the Instructions for Form 1040), instead of your tax from Form 

1040, 1040-SR, or 1040-NR, line 16.

Line 11 (Tentative Tax)

Subtract line 10 from line 9 and enter the result on this 

line. This is the tentative tax.

If line 7 is blank, skip lines 12a and 12b and enter the 

amount from line 11 on line 13. Also skip the discussion 

for lines 12a and 12b that follows.

Lines 12a and 12b (Dividing the Tentative 

Tax)

If an amount is entered on line 7, divide the tentative tax 

shown on line 11 among the children according to each 

child's share of the total net unearned income. This is 

done on lines 12a, 12b, and 13. Add the amount on line 7 

to the amount on line 5 and enter the total on line 12a. Divide the amount on line 5 by the amount on line 12a and 

enter the result, as a decimal, on line 12b.

Example. In the earlier example under Line 7 (Net Unearned Income of Other Children), Sharon's Form 8615 

shows $1,600 on line 7. The amount entered on line 12a 

is $2,400, the total of the amounts on lines 5 and 7 ($800 

+ $1,600). The decimal on line 12b is 0.333, figured as follows and rounded to three places.

$800

= 0.333 $2,400

Line 13 (Child's Share of Tentative Tax)

If an amount is entered on line 7, multiply line 11 by the 

decimal on line 12b and enter the result on line 13. This is 

the child’s share of the tentative tax.

Step 3. Figuring the Child's Tax (Form 

8615, Part III)

The final step in figuring the child’s tax is to determine the 

larger of:

1. The total of:

a. The child’s share of the tentative tax based on the 

parent's tax rate, plus

b. The tax on the child’s taxable income in excess of 

net unearned income, figured at the child’s tax 

rate; or

2. The tax on the child’s taxable income, figured at the 

child’s tax rate.

This is the child’s tax. It is figured on Form 8615, lines 

14 through 18.

Line 14 (Child's Taxable Income in Excess 

of Net Unearned Income)

If lines 4 and 5 of Form 8615 are the same, the child’s taxable income isn’t more than the child’s net unearned income. Enter zero on lines 14 and 15, and go to line 16. 

Also skip the rest of this discussion and the discussion for 

line 15 that follows.

If lines 4 and 5 aren't the same, subtract line 5 from 

line 4 and enter the result on line 14. Then, before completing line 15, you must determine the amount of net capital gain and qualified dividends, if any, included on 

line 14.

Net capital gain and qualified dividends on line 14. If 

the child doesn’t have any net capital gain or qualified dividends, the amount of the net capital gain and qualified 

dividends included on line 14 is zero.

If the child has net capital gain, the amount of net capital gain included on line 14 is the amount from line 2 of the 

child’s completed Line 5 Worksheet minus the amount 

from the last line of that worksheet. (See the earlier discussion of line 8 of Form 8615.)

If the child has qualified dividends, the amount of qualified dividends included on line 14 is the amount from 

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

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

(See the earlier discussion of line 8 of Form 8615.)

Line 15 (Tax on Child's Taxable Income in 

Excess of Net Unearned Income)

Figure the tax on the amount on line 14 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet, the Schedule D 

Tax Worksheet, or Schedule J (Form 1040), as follows.

• If line 14 doesn’t include any net capital gain or qualified dividends, use the Tax Table or Tax Computation 

Worksheet (or Schedule J, if applicable) to figure this 

tax.

Page 20 Publication 929 (2021)
• If line 14 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain 

Tax Worksheet to figure this tax. For details, see the 

instructions for Form 8615, line 15. However, if the 

child has 28% rate gain or unrecaptured section 1250 

gain, use the Schedule D Tax Worksheet. (But use 

Schedule J instead, if it applies.)

Child files Form 2555. If line 14 includes any net capital 

gain or qualified dividends and the child files Form 2555, 

go to Using the Schedule D Tax Worksheet for line 15 tax 

next to figure the line 15 tax.

Using the Schedule D Tax Worksheet for line 15 tax.

Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 15 tax if the child has unrecaptured section 1250 gain or 28% rate gain. Don’t attach this 

Schedule D Tax Worksheet to the child’s return.

Complete this Schedule D Tax Worksheet as follows.

1. On line 1, enter the amount from Form 8615, line 14.

2. On line 2, enter the qualified dividends included on 

Form 8615, line 14. (See the earlier discussion of 

line 14.)

3. Leave lines 3 through 5 blank.

4. Enter the amount from line 2 on line 6.

5. On line 7, enter the net capital gain included on Form 

8615, line 14. (See the earlier discussion of line 14.)

6. Skip line 8.

7. Enter the amount from line 7 on line 9.

8. Complete line 10, following the worksheet instructions.

9. On line 11, enter zero if the child has no 28% rate gain 

(Schedule D, line 18) or unrecaptured section 1250 

gain (Schedule D, line 19). Otherwise, see Worksheet 

1 for Line 11 of the Schedule D Tax Worksheet—28% 

Rate Gain (Line 9 Tax) and Worksheet 2 for Line 11 of 

the Schedule D Tax Worksheet—Unrecaptured Section 1250 Gain (Line 9 Tax) under Using the Schedule D Tax Worksheet for line 9 tax, earlier. For each 

worksheet you complete, subtract line 5 of that worksheet from line 1 of that worksheet, and include the 

result on line 11 of this worksheet.

10. If the child isn’t filing Form 2555, skip steps 11, 12, 

and 13 below, and go to step 14. If the child is filing 

Form 2555, go to step 11.

11. Determine whether there is a line 14 capital gain excess as follows.

a. Subtract from line 2c of your Foreign Earned Income Tax Worksheet the excess, if any, of the 

amount on line 5 of the child's Form 8615 over the 

child's taxable income on Form 1040 or 1040-NR, 

line 15.

b. Subtract (a) from the amount on line 14 of Form 

8615.

c. Subtract (b) from the amount on line 10 of this 

Schedule D Tax Worksheet. If the result is more 

than zero, that amount is the line 14 capital gain 

excess. If the result is zero or less, there is no 

line 14 capital gain excess.

12. If there is no line 14 capital gain excess, skip step 13 

below and go to step 14.

13. If there is a line 14 capital gain excess, complete a 

second Schedule D Tax Worksheet as instructed 

above and in step 14 below but in its entirety and with 

the following additional modifications. (These modifications are to be made only for purposes of filling out 

this Schedule D Tax Worksheet.)

a. Reduce the amount you would otherwise enter on 

line 9 (but not below zero) by the line 14 capital 

gain excess.

b. Reduce the amount you would otherwise enter on 

line 6 (but not below zero) by any of the line 14 

capital gain excess not used in (a) above.

c. If the child has 28% rate gain, reduce the amount 

you would otherwise enter on line 11, as figured in 

step 9, (but not below zero) by the line 14 capital 

gain excess.

d. If the child has unrecaptured section 1250 gain, 

reduce the amount you would otherwise enter on 

line 11, as figured in step 9, (but not below zero) 

by the line 14 capital gain excess not used in (c) 

above.

14. Complete lines 12 through 47 following the worksheet 

instructions. Use the child's filing status to complete 

lines 15, 44, and 46.

Enter the amount from line 47 of this Schedule D Tax 

Worksheet on Form 8615, line 15, and check the box on 

that line. Don’t attach this worksheet to your return.

Using Schedule J (Form 1040) for line 15 tax. If 

Schedule J applies, use it as a worksheet to figure the tax 

to enter on Form 8615, line 15. On line 1 of this worksheet, enter the amount from Form 8615, line 14. Complete lines 2a through 23 following the Schedule J instructions. Use the child’s filing status to complete lines 4, 8, 

12, and 16.

Enter the amount from line 23 of this worksheet Schedule J on Form 8615, line 15, and check the box on that 

line. Don’t attach this worksheet to the child’s return.

Line 16 (Combined Tax)

Add lines 13 and 15 and enter the total on line 16. This is 

your child’s tax figured at the parent's rate on net unearned income and the child’s tax rate on other income.

Line 17 (Tax at Child's Rate)

Figure the tax on the amount on line 4. Use the Tax Table, 

the Tax Computation Worksheet, the Qualified Dividends 

and Capital Gain Tax Worksheet, the Schedule D Tax 

Worksheet, or the child’s actual Schedule J (Form 1040), 

Publication 929 (2021) Page 21
whichever applies. Enter the tax amount on line 17. If the 

amount was figured using the Qualified Dividends and 

Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, or Schedule J, check the box on that line.

Child files Form 2555. If your child files Form 2555 and 

has a net capital gain or qualified dividends, figure the tax 

using the Qualified Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Worksheet, whichever applies. To fill out that worksheet, follow the instructions in 

the footnote to the Foreign Earned Income Tax Worksheet 

(in the Instructions for Form 1040).

Line 18 (Tax)

Enter on line 18 the larger of line 16 or line 17. Also enter 

this amount on the child’s Form 1040 or 1040-NR, line 16. 

This is the child’s tax.

Child files Form 2555. If your child files Form 2555, 

don't enter the amount from Form 8615, line 18, on the 

child's Form 1040 or 1040-NR, line 16. Instead, enter the 

amount from Form 8615, line 18, on line 4 of the child's 

Foreign Earned Income Tax Worksheet. Then complete 

the rest of the Foreign Earned Income Tax Worksheet (in 

the Instructions for Form 1040) to figure the child’s tax.

Alternative Minimum Tax (AMT)

A child may be subject to AMT if he or she has certain 

items given preferential treatment under the tax law. 

These items include accelerated depreciation and certain 

tax-exempt interest income. The AMT may also apply if 

you have passive activity losses or certain distributions 

from estates or trusts.

For more information on who is liable for AMT and how 

to figure it, see Form 6251.

Page 22 Publication 929 (2021)
Glossary

Adjusted gross income. Gross income (defined later) minus adjustments to income (defined next).

Adjustments to income. Deductions 

that are subtracted from gross income 

in figuring adjusted gross income. 

They include deductions for moving 

expenses, a penalty on early withdrawal of savings, and contributions to 

an individual retirement arrangement 

(IRA). Adjustments to income can be 

taken even if itemized deductions (defined later) aren’t claimed.

Alternative minimum tax (AMT). A 

tax designed to collect at least a minimum amount of tax from taxpayers 

who benefit from the tax laws that give 

special treatment to certain kinds of income and allow deductions and credits 

for certain kinds of expenses.

Capital gain distribution. An allocated amount paid to, or treated as paid 

to, a shareholder by a mutual fund, 

regulated investment company, or real 

estate investment trust from its net realized long-term capital gains. This 

amount is in addition to any ordinary 

dividend paid to the shareholder. You 

will receive a statement from the payer 

if this applies to you.

Dependent. A person, other than the 

taxpayer or the taxpayer's spouse, you 

can claim on your return. To be your 

dependent, a person must be your 

qualifying child or qualifying relative 

(both defined later). For more information, see Dependents in Pub. 501.

Earned income. Salaries, wages, 

tips, professional fees, and other 

amounts received as pay for work actually performed.

For purposes of determining a dependent's standard deduction, earned 

income also includes any part of a 

scholarship or fellowship grant that the 

dependent must include in his or her 

gross income.

For purposes of completing Form 

8615, earned income also includes a 

taxable distribution from a qualified disability trust. It doesn’t include unearned 

income as defined earlier under Line 1 

(Unearned Income).

Exemption. The deduction for personal exemptions is suspended (equal 

to $0) for tax years 2018 through 2025. 

Although you can't claim a deduction 

for exemptions, your eligibility to claim 

an exemption for a child or qualifying 

relative remains important to determine 

your eligibility to claim the child tax 

credit, the additional child tax credit, 

and the credit for other dependents, as 

well as other tax benefits.

Full-time student. A full-time student 

is a child who during some part of each 

of any 5 calendar months of the year 

was enrolled as a full-time student at a 

school, or took a full-time on-farm training course given by a school or a state, 

county, or local government agency. A 

school includes a technical, trade, or 

mechanical school. It doesn’t include 

an on-the-job training course, correspondence school, or school offering 

courses only through the Internet.

Gross income. All income from all 

sources that isn’t exempt from tax and 

must be included on your tax return. 

Gross income is the total of your 

earned and unearned income.

For purposes of determining 

whether you must file a return, gross 

income includes gain from the sale of 

your main home (even if you can exclude part or all of it) and includes income earned outside the United States 

(even if you can exclude part or all of 

it).

Itemized deductions. Deductions allowed on Schedule A (Form 1040) for 

medical and dental expenses, taxes, 

home mortgage interest and investment interest, charitable contributions, 

and casualty and theft losses. They are 

subtracted from adjusted gross income 

in figuring taxable income. Itemized deductions can’t be claimed if the standard deduction is chosen.

For tax years 2018 through 

2025, miscellaneous itemized 

deductions are suspended 

and not deductible.

CAUTION

!

Net capital gain. The excess of net 

long-term capital gain over any net 

short-term capital loss. For 2021, this 

is the smaller of the gain on line 15 or 

the gain on line 16 of Schedule D 

(Form 1040). If Schedule D (Form 

1040) isn’t required, net capital gain is 

the amount of capital gain distributions 

on Form 1040, 1040-SR, or 1040-NR, 

line 7.

Net unearned income. The total of 

all unearned income (other than 

tax-exempt income) reduced by the 

sum of:

1. Any adjustments to income (defined earlier) that are related to the 

unearned income, plus

2. $2,200.

Qualified dividends. Dividends eligible for the lower tax rates that apply to 

a net capital gain. They are reported to 

you in box 1b of Form 1099-DIV. You 

report them on Form 1040, 1040-SR, 

or 1040-NR, line 3a. For more information, see Pub. 550.

Qualifying child. To be your dependent (defined earlier), a person must be 

either your qualifying child or your qualifying relative (defined next). Generally, 

a person is your qualifying child if that 

person:

• Is your child, stepchild, foster child, 

brother, sister, stepbrother, stepsister, or a descendant of any of 

them;

• Lived with you for more than half of 

the year;

• Didn’t provide more than half of his 

or her own support for the year;

• Was under age 19 at the end of the 

year and younger than you (or your 

spouse if filing jointly) (or was under age 24 at the end of the year, a 

student, and younger than you (or 

your spouse if filing jointly), or was 

any age and permanently and totally disabled); and

• Didn’t file a joint return with his or 

her spouse.

Publication 929 (2021) Page 23
For details, see Dependents in Pub. 

501.

Qualifying relative. To be your dependent (defined earlier), a person 

must be either your qualifying child 

(defined earlier) or your qualifying relative. Generally, a person is your qualifying relative if that person:

• Lives with or is related to you,

• Has less than $4,300 of gross (total) income,

• Is supported (generally more than 

50%) by you, and

• Is neither your qualifying child nor 

the qualifying child of anyone else.

For details, see Dependents in Pub. 

501.

Standard deduction. An amount that 

can be subtracted from adjusted gross 

income in figuring taxable income. The 

standard deduction isn’t used if itemized deductions are claimed.

Support. All amounts spent to provide 

the child with food, lodging, clothing, 

education, medical and dental care, 

recreation, transportation, and similar 

necessities. To figure your child's support, count support provided by you, 

your child, and others. However, a 

scholarship received by your child isn’t 

considered support if your child is a 

full-time student. See Pub. 501 for details.

Tax year. The time period covered by 

a tax return. Usually, this is January 1 

through December 31, a calendar year, 

but taxpayers can elect a fiscal tax 

year with different beginning and ending dates.

Taxable income. Gross income minus any adjustments to income and either itemized deductions or the standard deduction.

Unearned income. Income other than 

earned income. This is investment-type income and includes interest, dividends, and capital gains (including capital gain distributions), 

rents, royalties, etc. Distributions of interest, dividends, capital gains, and 

other unearned income from a trust are 

also unearned income to a beneficiary 

of the trust. However, for purposes of 

completing Form 8615, a taxable distribution from a qualified disability trust is 

considered earned income.

Unrecaptured section 1250 gain.

Generally, any part of your net capital 

gain from selling section 1250 property 

(real property) that is due to depreciation. For details, see Pub. 550.

28% rate gain. Gain from the sale of 

collectibles and, generally, the taxable 

part of your gain from the sale of qualified small business stock held more 

than 5 years. For details, see the Instructions for Schedule D (Form 1040).

Page 24 Publication 929 (2021)
How To Get Tax Help

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, forms, or instructions, go to 

IRS.gov to find resources that can help 

you right away.

Preparing and filing your tax return. 

After receiving all your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); 

unemployment compensation statements (by mail or in a digital format) or 

other government payment statements 

(Form 1099-G); and interest, dividend, 

and retirement statements from banks 

and investment firms (Forms 1099), 

you have several options to choose 

from to prepare and file your tax return. 

You can prepare the tax return yourself, see if you qualify for free tax preparation, or hire a tax professional to 

prepare your return.

For 2021, if you received an 

Economic Impact Payment 

(EIP), refer to your Notice 

1444-C, Your 2021 Economic Impact 

Payment. If you received Advance 

Child Tax Credit payments, refer to 

your Letter 6419.

Free options for tax preparation. 

Go to IRS.gov to see your options for 

preparing and filing your return online 

or in your local community, if you qualify, which include the following.

• Free File. This program lets you 

prepare and file your federal individual income tax return for free using brand-name tax-preparation-and-filing software or Free File 

fillable forms. However, state tax 

preparation may not be available 

through Free File. Go to IRS.gov/

FreeFile to see if you qualify for 

free online federal tax preparation, 

e-filing, and direct deposit or payment options.

• VITA. The Volunteer Income Tax 

Assistance (VITA) program offers 

free tax help to people with 

low-to-moderate incomes, persons 

with disabilities, and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/VITA, download the free IRS2Go app, or call 

CAUTION

!

800-906-9887 for information on 

free tax return preparation.

• TCE. The Tax Counseling for the 

Elderly (TCE) program offers free 

tax help for all taxpayers, particularly those who are 60 years of age 

and older. TCE volunteers specialize in answering questions about 

pensions and retirement-related issues unique to seniors. Go to 

IRS.gov/TCE, download the free 

IRS2Go app, or call 888-227-7669 

for information on free tax return 

preparation.

• MilTax. Members of the U.S. 

Armed Forces and qualified veterans may use MilTax, a free tax 

service offered by the Department 

of Defense through Military OneSource. For more information, go 

to MilitaryOneSource 

(MilitaryOneSource.mil/Tax).

Also, the IRS offers Free Fillable 

Forms, which can be completed 

online and then filed electronically 

regardless of income.

Using online tools to help prepare 

your return. Go to IRS.gov/Tools for 

the following.

• The Earned Income Tax Credit 

Assistant (IRS.gov/EITCAssistant) 

determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application 

(IRS.gov/EIN) helps you get an 

employer identification number 

(EIN) at no cost.

• The Tax Withholding Estimator 

(IRS.gov/W4app) makes it easier 

for everyone to pay the correct 

amount of tax during the year. The 

tool is a convenient, online way to 

check and tailor your withholding. 

It’s more user-friendly for taxpayers, including retirees and self-employed individuals. The features include the following.

▶ Easy to understand language.

▶ The ability to switch between 

screens, correct previous entries, 

and skip screens that don’t apply.

▶ Tips and links to help you determine if you qualify for tax credits 

and deductions.

▶ A progress tracker.

▶ A self-employment tax feature.

▶ Automatic calculation of taxable social security benefits.

• The First-Time Homebuyer Credit 

Account Look-up (IRS.gov/

HomeBuyer) tool provides information on your repayments and account balance.

• The Sales Tax Deduction 

Calculator (IRS.gov/SalesTax) figures the amount you can claim if 

you itemize deductions on Schedule A (Form 1040).

Getting answers to your tax 

questions. On IRS.gov, you 

can get up-to-date information 

on current events and changes in tax 

law.

• IRS.gov/Help: A variety of tools to 

help you get answers to some of 

the most common tax questions.

• IRS.gov/ITA: The Interactive Tax 

Assistant, a tool that will ask you 

questions and, based on your input, provide answers on a number 

of tax law topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You 

will find details on 2021 tax 

changes and hundreds of interactive links to help you find answers 

to your questions.

• You may also be able to access tax 

law information in your electronic 

filing software.

Need someone to prepare your tax 

return? There are various types of 

tax return preparers, including tax preparers, enrolled agents, certified public 

accountants (CPAs), attorneys, and 

many others who don’t have professional credentials. If you choose to have 

someone prepare your tax return, 

choose that preparer wisely. A paid tax 

preparer is:

• Primarily responsible for the overall 

substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer 

tax identification number (PTIN).

Publication 929 (2021) Page 25
Although the tax preparer always 

signs the return, you're ultimately responsible for providing all the information required for the preparer to accurately prepare your return. Anyone paid 

to prepare tax returns for others should 

have a thorough understanding of tax 

matters. For more information on how 

to choose a tax preparer, go to Tips for 

Choosing a Tax Preparer on IRS.gov.

Advance child tax credit payments. 

From July through December 2021, 

advance payments were sent automatically to taxpayers with qualifying children who met certain criteria. The advance child tax credit payments were 

early payments of up to 50% of the estimated child tax credit that taxpayers 

may properly claim on their 2021 returns. Go to IRS.gov/AdvCTC for more 

information about these payments and 

how they can affect your taxes.

Coronavirus. Go to IRS.gov/

Coronavirus for links to information on 

the impact of the coronavirus, as well 

as tax relief available for individuals 

and families, small and large businesses, and tax-exempt organizations.

Employers can register to use Business Services Online. The Social 

Security Administration (SSA) offers 

online service at SSA.gov/employer for 

fast, free, and secure online W-2 filing 

options to CPAs, accountants, enrolled 

agents, and individuals who process 

Form W-2, Wage and Tax Statement, 

and Form W-2c, Corrected Wage and 

Tax Statement.

IRS social media. Go to IRS.gov/

SocialMedia to see the various social 

media tools the IRS uses to share the 

latest information on tax changes, 

scam alerts, initiatives, products, and 

services. At the IRS, privacy and security are our highest priority. We use 

these tools to share public information 

with you. Don’t post your social security number (SSN) or other confidential 

information on social media sites. Always protect your identity when using 

any social networking site.

The following IRS YouTube channels provide short, informative videos 

on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

Watching IRS videos. The IRS Video 

portal (IRSVideos.gov) contains video 

and audio presentations for individuals, 

small businesses, and tax professionals.

Online tax information in other languages. You can find information on 

IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter 

(OPI) Service. The IRS is committed 

to serving our multilingual customers 

by offering OPI services. The OPI 

Service is a federally funded program 

and is available at Taxpayer Assistance Centers (TACs), other IRS offices, and every VITA/TCE return site. 

The OPI Service is accessible in more 

than 350 languages.

Accessibility Helpline available for 

taxpayers with disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. 

The Accessibility Helpline can answer 

questions related to current and future 

accessibility products and services 

available in alternative media formats 

(for example, braille, large print, audio, 

etc.).

Getting tax forms and publications. 

Go to IRS.gov/Forms to view, download, or print all of the forms, instructions, and publications you may need. 

Or, you can go to IRS.gov/OrderForms 

to place an order.

Getting tax publications and instructions in eBook format. You can 

also download and view popular tax 

publications and instructions (including 

the Instructions for Form 1040) on mobile devices as eBooks at IRS.gov/

eBooks.

Note. IRS eBooks have been tested using Apple's iBooks for iPad. Our 

eBooks haven’t been tested on other 

dedicated eBook readers, and eBook 

functionality may not operate as intended.

Access your online account (individual taxpayers only). Go to 

IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a 

breakdown by tax year.

• See payment plan details or apply 

for a new payment plan.

• Make a payment or view 5 years of 

payment history and any pending 

or scheduled payments.

• Access your tax records, including 

key data from your most recent tax 

return, your EIP amounts, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Tax Pro Account. This tool lets your 

tax professional submit an authorization request to access your individual 

taxpayer IRS online account. For more 

information, go to IRS.gov/

TaxProAccount.

Using direct deposit. The fastest 

way to receive a tax refund is to file 

electronically and choose direct deposit, which securely and electronically 

transfers your refund directly into your 

financial account. Direct deposit also 

avoids the possibility that your check 

could be lost, stolen, or returned undeliverable to the IRS. Eight in 10 taxpayers use direct deposit to receive their 

refunds. If you don’t have a bank account, go to IRS.gov/DirectDeposit for 

more information on where to find a 

bank or credit union that can open an 

account online.

Getting a transcript of your return. 

The quickest way to get a copy of your 

tax transcript is to go to IRS.gov/

Transcripts. Click on either “Get Transcript Online” or “Get Transcript by 

Mail” to order a free copy of your transcript. If you prefer, you can order your 

transcript by calling 800-908-9946.

Reporting and resolving your 

tax-related identity theft issues. 

• Tax-related identity theft happens 

when someone steals your personal information to commit tax 

Page 26 Publication 929 (2021)
fraud. Your taxes can be affected if 

your SSN is used to file a fraudulent return or to claim a refund or 

credit.

• The IRS doesn’t initiate contact 

with taxpayers by email, text messages, telephone calls, or social 

media channels to request personal or financial information. This 

includes requests for personal 

identification numbers (PINs), 

passwords, or similar information 

for credit cards, banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the 

IRS Identity Theft Central webpage, for information on identity 

theft and data security protection 

for taxpayers, tax professionals, 

and businesses. If your SSN has 

been lost or stolen or you suspect 

you’re a victim of tax-related identity theft, you can learn what steps 

you should take.

• Get an Identity Protection PIN (IP 

PIN). IP PINs are six-digit numbers 

assigned to taxpayers to help prevent the misuse of their SSNs on 

fraudulent federal income tax returns. When you have an IP PIN, it 

prevents someone else from filing 

a tax return with your SSN. To 

learn more, go to IRS.gov/IPPIN.

Ways to check on the status of your 

refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app 

to your mobile device to check your 

refund status.

• Call the automated refund hotline 

at 800-829-1954.

Note. The IRS can’t issue refunds 

before mid-February 2022 for returns 

that claimed the EIC or the additional 

child tax credit (ACTC). This applies to 

the entire refund, not just the portion 

associated with these credits.

Making a tax payment. Go to 

IRS.gov/Payments for information on 

how to make a payment using any of 

the following options.

• IRS Direct Pay: Pay your individual 

tax bill or estimated tax payment 

directly from your checking or savings account at no cost to you.

• Debit or Credit Card: Choose an 

approved payment processor to 

pay online or by phone.

• Electronic Funds Withdrawal: 

Schedule a payment when filing 

your federal taxes using tax return 

preparation software or through a 

tax professional.

• Electronic Federal Tax Payment 

System: Best option for businesses. Enrollment is required.

• Check or Money Order: Mail your 

payment to the address listed on 

the notice or instructions.

• Cash: You may be able to pay your 

taxes with cash at a participating 

retail store.

• Same-Day Wire: You may be able 

to do same-day wire from your financial institution. Contact your financial institution for availability, 

cost, and time frames.

Note. The IRS uses the latest encryption technology to ensure that the 

electronic payments you make online, 

by phone, or from a mobile device using the IRS2Go app are safe and secure. Paying electronically is quick, 

easy, and faster than mailing in a 

check or money order.

What if I can’t pay now? Go to 

IRS.gov/Payments for more information about your options.

• Apply for an online payment 

agreement (IRS.gov/OPA) to meet 

your tax obligation in monthly installments if you can’t pay your 

taxes in full today. Once you complete the online process, you will 

receive immediate notification of 

whether your agreement has been 

approved.

• Use the Offer in Compromise PreQualifier to see if you can settle 

your tax debt for less than the full 

amount you owe. For more information on the Offer in Compromise 

program, go to IRS.gov/OIC.

Filing an amended return. You can 

now file Form 1040-X electronically 

with tax filing software to amend 2019 

or 2020 Forms 1040 and 1040-SR. To 

do so, you must have e-filed your original 2019 or 2020 return. Amended returns for all prior years must be mailed. 

Go to IRS.gov/Form1040X for information and updates.

Checking the status of your amended return. Go to IRS.gov/WMAR to 

track the status of Form 1040-X amended returns.

Note. It can take up to 3 weeks 

from the date you filed your amended 

return for it to show up in our system, 

and processing it can take up to 16 

weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/

Notices to find additional information 

about responding to an IRS notice or 

letter.

You can use Schedule LEP, Request for Change in Language Preference, to state a preference to receive 

notices, letters, or other written communications from the IRS in an alternative language, when these are available. Once your Schedule LEP is 

processed, the IRS will determine your 

translation needs and provide you 

translations when available. If you have 

a disability requiring notices in an accessible format, see Form 9000.

Contacting your local IRS office. 

Keep in mind, many questions can be 

answered on IRS.gov without visiting 

an IRS TAC. Go to IRS.gov/LetUsHelp 

for the topics people ask about most. If 

you still need help, IRS TACs provide 

tax help when a tax issue can’t be handled online or by phone. All TACs now 

provide service by appointment, so 

you’ll know in advance that you can get 

the service you need without long wait 

times. Before you visit, go to IRS.gov/

TACLocator to find the nearest TAC 

and to check hours, available services, 

and appointment options. Or, on the 

IRS2Go app, under the Stay Connected tab, choose the Contact Us option 

and click on “Local Offices.”

The Taxpayer Advocate 

Service (TAS) Is Here To 

Help You

What Is TAS?

TAS is an independent organization 

within the IRS that helps taxpayers and 

protects taxpayer rights. Their job is to 

ensure that every taxpayer is treated 

fairly and that you know and 

Publication 929 (2021) Page 27
understand your rights under the 

Taxpayer Bill of Rights.

How Can You Learn About 

Your Taxpayer Rights?

The Taxpayer Bill of Rights describes 

10 basic rights that all taxpayers have 

when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you 

understand what these rights mean to 

you and how they apply. These are 

your rights. Know them. Use them.

What Can TAS Do for You?

TAS can help you resolve problems 

that you can’t resolve with the IRS. And 

their service is free. If you qualify for 

their assistance, you will be assigned 

to one advocate who will work with you 

throughout the process and will do everything possible to resolve your issue. 

TAS can help you if:

• Your problem is causing financial 

difficulty for you, your family, or 

your business;

• You face (or your business is facing) an immediate threat of adverse action; or

• You’ve tried repeatedly to contact 

the IRS but no one has responded, 

or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the 

District of Columbia, and Puerto Rico. 

Your local advocate’s number is in your 

local directory and at 

TaxpayerAdvocate.IRS.gov/ContactUs. You can also call them at 

877-777-4778.

How Else Does TAS Help 

Taxpayers?

TAS works to resolve large-scale problems that affect many taxpayers. If you 

know of one of these broad issues, report it to them at IRS.gov/SAMS.

TAS for Tax Professionals

TAS can provide a variety of information for tax professionals, including tax 

law updates and guidance, TAS programs, and ways to let TAS know 

about systemic problems you’ve seen 

in your practice.

Low Income Taxpayer 

Clinics (LITCs)

LITCs are independent from the IRS. 

LITCs represent individuals whose income is below a certain level and need 

to resolve tax problems with the IRS, 

such as audits, appeals, and tax collection disputes. In addition, LITCs can 

provide information about taxpayer 

rights and responsibilities in different 

languages for individuals who speak 

English as a second language. Services are offered for free or a small fee 

for eligible taxpayers. To find an LITC 

near you, go to 

TaxpayerAdvocate.IRS.gov/about-us/

Low-Income-Taxpayer-Clinics-LITC or 

see IRS Pub. 4134, Low Income 

Taxpayer Clinic List.

Page 28 Publication 929 (2021)
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

28% rate gain 12, 18

Defined 24

A

Adjusted gross income (AGI), 

defined 23

Adjustments to income, 

defined 16, 23

Age 65 or older dependents 4

Aliens:

Individual taxpayer identification 

number (ITIN) 2

Standard deduction 8

Alternative minimum tax (AMT) 5, 

11

Defined 23

Assistance (See Tax help)

B

Blind dependents, filing 

requirements 4

C

Capital gain distributions 12

Defined 23

Capital losses 15

Child, qualifying 23

Child's earnings 7

Child's expenses 7

Child's return:

Responsibility for 5–7

Child's unearned income:

Tax on 9

Church, wages from 5

Credits, reduced 11

D

Deductible investment interest 11

Deductions 11

Deductions, reduced 11

Dependents:

Defined 23

Exemption for 8

Own exemption 8

Social security numbers (SSNs) 

of 2

Divorced parents, reporting child's 

unearned income 11

E

Earned income 3, 4

Defined 23

Education credit, recaptured 5

Election to include child's income 

on parent's return 9, 10

Estimated tax, penalty 12

Exemption:

Defined 23

Own exemption — dependent 8

Exemption from withholding 9

Extension of time to file 14

F

Figures (See Tables and figures)

Figuring child's income 12

Filing requirements 3–5

Form 1040:

Schedule J 19, 21

Form 1099-DIV 12

Form 2555 16, 18, 21, 22

Form 2848 6, 15

Form 6251 11

Form 8615 13–22

Form 8814 10, 12, 13

Form W-4 9

Full-time student, defined 23

G

Gift, income from property 

received as 15

Gross income, defined 23

I

Individual taxpayer identification 

numbers (ITINs) 2

Investment interest 11

IRS notice sent to child 7

Itemized deductions:

Defined 23

J

Joint return of parents 10

L

Life insurance 5

M

Married parents filing 

separately 11

Medicare tax 5

Missing children, photographs of 2

N

Net capital gain:

Defined 23

Net unearned income 16

Defined 23

P

Parents:

Election (See Election to include 

child's income on parent's return)

Which parent's return to use 10

Penalty, estimated tax 12

Publications (See Tax help)

Q

Qualified dividends 12

Defined 23

Qualifying child 23

Qualifying relative 24

R

Recapture taxes 5

Relative, qualifying 24

Remarried custodial parent, 

reporting child's unearned 

income 11

Remarried widowed parent, 

reporting child's unearned 

income 11

Returns:

Filing even if not required 5

Parent's election to include child's 

income (See Election to include 

child's income on parent's return)

Responsibility for child's return 5–7

Signing child's return 6

Who must file 3–5

S

Schedule D Tax Worksheet 18, 19, 

21

Section 1202 gain 12

Self-employed, filing 

requirements 5

Separated parents, reporting 

child's unearned income 11

Signing child's return 6

Social security numbers (SSNs) of 

dependents 2

Social security tax 5

Standard deduction 7, 8

Defined 24

Worksheet for dependents 

(Worksheet 1) 7

Zero 8

Support, defined 24

Publication 929 (2021) Page 29
T

Tables and figures:

Determining whether Form 8615 is 

required (Figure 2) 15

Election to include child's income 

on parent's return (Figure 1) 10

Filing requirements for dependents 

(Table 1) 6

Taxable income, defined 24

Tax help 15, 25

Tax on child's unearned 

income 9–24

Age requirement 13

Figured on Form 8615 13

Tax year, defined 24

Third party designee 6

Tips not reported to employer 5

Trust income 16

U

Unearned income 3, 4

Defined 15, 24

Election to include child's income 

on parent's return (See Election 

to include child's income on 

parent's return)

Tax on 9

Unrecaptured section 1250 

gain 12, 19

Defined 24

W

Withholding 8

Worksheets:

Dependent's filing requirement 4

Form 8615 alternate worksheet 15

Qualified dividends and capital gain 

tax 17

Schedule D Tax 19

Standard deduction worksheet for 

dependents (Worksheet 1) 7

Unrecaptured section 1250 gain 19

Page 30 Publication 929 (2021)