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OMB No. 1545-0998 Tax for Children Under Age 14

Who Have Investment Income of More Than $1,300 Form 8615

Department of the Treasury

Internal Revenue Service

Attachment

© Attach ONLY to the child’s Form 1040, Form 1040A, Form 1040NR, or Form 1040-T. Sequence No. 33

General Instructions

Purpose of Form.—For children under age

14, investment income over $1,300 is

taxed at the parent’s rate if the parent’s

rate is higher than the child’s rate. If the

child’s investment income is more than

$1,300, use this form to figure the child’s

tax.

Note: The parent may be able to elect to

report the child’s interest and dividends

on his or her return. If the parent makes

this election, the child will not have to file a

return or Form 8615. For more details, see

the child’s tax return instruction booklet or

get Form 8814, Parents’ Election To

Report Child’s Interest and Dividends.

Who Must File.—Generally, Form 8615

must be filed for any child who was under

age 14 on January 1, 1996, had more than

$1,300 of investment income, and is

required to file a tax return. If neither

Child’s name shown on return Child’s social security number

Parent’s name (first, initial, and last). Caution: See instructions on back before completing. Parent’s social security number

Parent’s filing status (check one):

Figure child’s net investment income

Enter child’s investment income, such as taxable interest and dividend income. See instructions.

If this amount is $1,300 or less, stop; do not file this form

1

1

If the child DID NOT itemize deductions on Schedule A (Form 1040 or Form 1040NR) or Section

B (Form 1040-T), enter $1,300. If the child ITEMIZED deductions, see instructions

2

2

Subtract line 2 from line 1. If the result is zero or less, stop; do not complete the rest of this

form but ATTACH it to the child’s return

3

3

4

Enter child’s taxable income from Form 1040, line 37; Form 1040A, line 22; Form 1040NR, line 36;

or Form 1040-T, line 25

4

5 Enter the smaller of line 3 or line 4 © 5

Figure tentative tax based on the tax rate of the parent listed on line A

Enter parent’s taxable income from Form 1040, line 37; Form 1040A, line 22; Form 1040EZ, line

6; Form 1040NR, line 36; Form 1040NR-EZ, line 13; or Form 1040-T, line 25. If the parent

transferred property to a trust, see instructions

6

6

Enter the total net investment income, if any, from Forms 8615, line 5, of ALL OTHER children

of the parent identified above. Do not include the amount from line 5 above

7

7

8 Add lines 5, 6, and 7 8

9

Tax on line 8 based on the parent’s filing status. See instructions. If from Capital Gain Tax

Worksheet, enter amount from line 4 of that worksheet here ©

9

10 Enter parent’s tax from Form 1040, line 38; Form 1040A, line 23; Form 1040EZ, line 10; Form

1040NR, line 37; Form 1040NR-EZ, line 14; or Form 1040-T, line 26. If from Capital Gain Tax

Worksheet, enter amount from line 4 of that worksheet here © 10

Subtract line 10 from line 9. If line 7 is blank, enter on line 13 the amount from line 11; skip

lines 12a and 12b

11

11

12a Add lines 5 and 7 12a

b Divide line 5 by line 12a. Enter the result as a decimal (rounded to two places) 12b . 13 Multiply line 11 by line 12b © 13

Figure child’s tax—If lines 4 and 5 above are the same, enter -0- on line 15 and go to line 16.

14 Subtract line 5 from line 4 14

15

15 Tax on line 14 based on the child’s filing status. See instructions. If from Capital Gain Tax

Worksheet, enter amount from line 4 of that worksheet here ©

16 Add lines 13 and 15 16

17

17 Tax on line 4 based on the child’s filing status. See instructions. If from Capital Gain Tax

Worksheet, check here ©

18 Enter the larger of line 16 or line 17 here and on Form 1040, line 38; Form 1040A, line 23; Form

1040NR, line 37; or Form 1040-T, line 26. Be sure to check the box (or, on Form 1040-T, fill in the

space) for “Form 8615” even if line 17 is more than line 16 © 18

For Paperwork Reduction Act Notice, see back of form. Form 8615 (1995)

A B

C

Single Married filing jointly Married filing separately Head of household Qualifying widow(er)

Investment Income.—As used on this

form, “investment income” includes all

taxable income other than earned income

as defined on page 2. It includes taxable

interest, dividends, capital gains, rents,

royalties, etc. It also includes pension and

annuity income and income (other than

earned income) received as the beneficiary

of a trust.

Cat. No. 64113U

3

Additional Information.—For more details,

get Pub. 929, Tax Rules for Children and

Dependents.

Caution: At the time this form was printed,

Congress was considering legislation that

would change the tax treatment of capital

gains. For information on the changes, get

Pub. 553, Highlights of 1995 Tax Changes.

parent was alive on December 31, 1995,

do not use Form 8615. Instead, figure the

child’s tax in the normal manner.
Form 8615 (1995) Page 2

Line 6.—If the parent’s taxable income is

less than zero, enter zero on line 6. If the

parent filed a joint return, enter the taxable

income shown on that return even if the

parent’s spouse is not the child’s parent. If

the parent transferred property to a trust

that sold or exchanged the property during

the year at a gain, include any gain that

was taxed to the trust under section 644 in

the amount entered on line 6. Enter

“Section 644” and the amount to the right

of the line 6 entry. Also, see the

instructions for line 10.

Paperwork Reduction Act Notice.—We

ask for the information on this form to

carry out the Internal Revenue laws of the

United States. You are required to give us

the information. We need it to ensure that

you are complying with these laws and to

allow us to figure and collect the right

amount of tax.

The time needed to complete and file

this form will vary depending on individual

circumstances. The estimated average time

is: Recordkeeping, 13 min.; Learning

about the law or the form, 12 min.;

Preparing the form, 45 min.; and

Copying, assembling, and sending the

form to the IRS, 17 min.

If the child had earned income, use the

following worksheet to figure the amount

to enter on line 1. But if the child files

Form 2555, Foreign Earned Income, or

Form 2555-EZ, Foreign Earned Income

Exclusion, has a net loss from

self-employment, or claims a net operating

loss deduction, do not use the worksheet

below. Instead, use the worksheet in Pub.

929 to figure the amount to enter on line 1.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form simpler,

we would be happy to hear from you. See

the instructions for the tax return with

which this form is filed.

Line 10.—If the parent filed a joint return,

enter the tax shown on that return even if

the parent’s spouse is not the child’s

parent. If the parent filed Form 8814, enter

“Form 8814” and the total tax from line 8

of Form(s) 8814 in the space next to line

10 of Form 8615.

Line Instructions

Worksheet (keep a copy for your records)

Enter the amount from the

child’s Form 1040, line 22;

Form 1040A, line 14; Form

1040NR, line 23; or Form

1040-T, line 10, whichever

applies

1.

Lines A and B.—If the child’s parents

were married to each other and filed a joint

return, enter the name and social security

number (SSN) of the parent who is listed

first on the joint return. For example, if the

father’s name is listed first on the return

and his SSN is entered in the block labeled

“Your social security number,” enter his

name on line A and his SSN on line B.

Enter the child’s earned

income (defined below)

plus any deduction the

child claims on Form 1040,

line 28; Form 1040NR, line

28; or Form 1040-T, line

13, whichever applies

2.

Subtract line 2 from line 1.

Enter the result here and

on Form 8615, line 1

3.

If the parents were married but filed

separate returns, enter the name and SSN

of the parent who had the higher taxable

income. If you do not know which parent

had the higher taxable income, see Pub.

929.

Earned income includes wages, tips,

and other payments received for personal

services performed. Generally, it is the

total of the amounts reported on Form

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

7; Form 1040NR, lines 8, 13, and 19; or

Form 1040-T, line 1.

If the parents were unmarried, treated as

unmarried for Federal income tax

purposes, or separated either by a divorce

or separate maintenance decree, enter the

name and SSN of the parent who had

custody of the child for most of the year

(the custodial parent).

Line 2.—If the child itemized deductions,

enter the greater of:

● $650 plus the portion of the amount on

Schedule A (Form 1040), line 28, Schedule

A (Form 1040NR), line 17, or Section B

(Form 1040-T), line t, that is directly

connected with the production of the

investment income on Form 8615, line 1;

OR

● $1,300.

Note: If the parents were unmarried but

lived together during the year with the

child, enter the name and SSN of the

parent who had the higher taxable income.

Section references are to the Internal

Revenue Code. Form 1040-T references

are to a new form sent to certain

individuals on a test basis.

Line 9.—Figure the tax using the Tax

Table, Tax Rate Schedules, or the Capital

Gain Tax Worksheet, whichever applies. If

any net capital gain is included on lines 5,

6, and/or 7, the tax on the amount on line

8 may be less if the Capital Gain Tax

Worksheet can be used to figure the tax.

See Pub. 929 for details on how to figure

the net capital gain included on line 8 and

how to complete the worksheet. The

Capital Gain Tax Worksheet should be

used if:

Line 15.—Figure the tax using the Tax

Table, Tax Rate Schedule X, or the Capital

Gain Tax Worksheet, whichever applies. If

line 14 is more than $56,550 and includes

any net capital gain, the tax may be less if

the Capital Gain Tax Worksheet is used to

figure the tax. See Pub. 929 for details on

how to figure the net capital gain included

on line 14 and how to complete the

worksheet.

Line 17.—Figure the tax as if these rules

did not apply. For example, if the child can

use the Capital Gain Tax Worksheet to

figure his or her tax, complete that

worksheet.

If the Capital Gain Tax Worksheet is

used to figure the tax, enter on Form 8615,

line 9, the amount from line 13 of that

worksheet. Also, enter the amount from

line 4 of that worksheet in the space next

to line 9 of Form 8615.

the parent’s

filing status

is:

the amount on

Form 8615,

line 8, is over:

● Single

● Married filing jointly or

Qualifying widow(er)

● Married filing

separately

● Head of household

$56,550

$94,250

$47,125

$80,750

AND

Line 1.—If the child had no earned income

(defined later), enter the child’s adjusted

gross income from Form 1040, line 32;

Form 1040A, line 17; Form 1040NR, line 32;

or Form 1040-T, line 16.

Exception. If the custodial parent

remarried and filed a joint return with his or

her new spouse, enter the name and SSN

of the person listed first on the joint return,

even if that person is not the child’s

parent. If the custodial parent and his or

her new spouse filed separate returns,

enter the name and SSN of the person

with the higher taxable income, even if

that person is not the child’s parent.

If line 6 includes any gain taxed to a

trust under section 644, add the tax

imposed under section 644(a)(2)(A) to the

tax shown on the parent’s return and enter

the total on line 10. Also, enter “Section

644” next to line 10.

Alternative Minimum Tax.—A child whose

tax is figured on Form 8615 may owe the

alternative minimum tax. For details, get

Form 6251, Alternative Minimum Tax—

Individuals, and its instructions.

Amended Return.—If after the child’s

return is filed the parent’s taxable income

is changed or the net investment income

of any of the parent’s other children is

changed, the child’s tax must be refigured

using the adjusted amounts. If the child’s

tax is changed as a result of the

adjustment(s), file Form 1040X, Amended

U.S. Individual Income Tax Return, to

correct the child’s tax.

Printed on recycled paper

Incomplete Information for Parent.—If

the parent’s taxable income or filing status

or the net investment income of the

parent’s other children is not known by the

due date of the child’s return, reasonable

estimates may be used. Write “Estimated”

on the appropriate line(s) of Form 8615.

For more details, see Pub. 929.