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, or Form 1040NR. 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

Form 8814, Parents’ Election To Report

Who must file. Generally, Form 8615 must Child’s Interest and Dividends.

be filed for any child who was under age

14 on January 1, 1998, had more than

$1,300 of investment income, and is

required to file a tax return. But if neither

parent was alive on December 31, 1997,

do not use Form 8615. Instead, figure the

child’s tax in the normal manner.

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):

Child’s Net Investment Income

Enter the child’s investment income, such as taxable interest and dividends. See instructions. If

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

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1

If the child did not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $1,300.

If the child did itemize 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 do attach it to the child’s return

3

3

4

Enter the child’s taxable income from Form 1040, line 38; Form 1040A, line 22; or Form 1040NR,

line 37 ©

4

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

Tentative Tax Based on the Tax Rate of the Parent Listed on Line A

Enter the parent’s taxable income from Form 1040, line 38; Form 1040A, line 22; Form 1040EZ,

line 6; TeleFile Tax Record, line J; Form 1040NR, line 37; or Form 1040NR-EZ, line 13. 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

Enter the tax on line 8 based on the parent’s filing status. See instructions. If Schedule D

(Form 1040) is used to figure the tax, check here ©

9

10 Enter the parent’s tax from Form 1040, line 39; Form 1040A, line 23; Form 1040EZ, line 10;

TeleFile Tax Record, line J; Form 1040NR, line 38; or Form 1040NR-EZ, line 14. If Schedule D

(Form 1040) was used to figure the tax, check here © 10

Subtract line 10 from line 9 and enter the result. If line 7 is blank, enter on line 13 the amount

from line 11 and go to Part III

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12a Add lines 5 and 7 12a

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

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

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15 Enter the tax on line 14 based on the child’s filing status. See instructions. If Schedule D

(Form 1040) is used to figure the tax, check here ©

16 Add lines 13 and 15 16

17

17 Enter the tax on line 4 based on the child’s filing status. See instructions. If Schedule D

(Form 1040) is used to figure the tax, check here ©

18 Enter the larger of line 16 or line 17 here and on Form 1040, line 39; Form 1040A, line 23; or

Form 1040NR, line 38 © 18

For Paperwork Reduction Act Notice, see back of form. Form 8615 (1997)

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

Cat. No. 64113U

3

Additional information. For more details,

see Pub. 929, Tax Rules for Children and

Dependents.

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

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Part III

Part I

Part II

Section references are to the Internal

Revenue Code.

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.

(99)
Form 8615 (1997) 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 in

1997 before August 6, 1997, include any

gain that was taxed to the trust under

section 644 in the amount entered on line

6. Enter “Sec. 644” and the amount on the

dotted line next to line 6. 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, 13 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

worksheet on this page to figure the

amount to enter on line 1. But if the child

files Form 2555 or 2555-EZ (relating to

foreign earned income), has a net loss

from self-employment, or claims a net

operating loss deduction, you must use

the worksheet in Pub. 929 instead.

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 on the dotted line next to

line 10 of Form 8615.

Line Instructions

Child’s Investment Income Worksheet—Line 1 (keep a copy for your records)

Enter the amount from the child’s Form 1040, line 22; Form 1040A,

line 14; or Form 1040NR, line 23, 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.

Enter the child’s earned income (defined on this page) plus any

deduction the child claims on Form 1040, line 29, or Form 1040NR,

line 29, 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; or Form 1040NR, lines 8, 13, and 19.

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, or

Schedule A (Form 1040NR), line 17, that is

directly connected with the production of

the investment income on Form 8615, 

line 1.

● $1,300, or

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.

Line 9. Figure the tax using the Tax Table,

Tax Rate Schedules, or Schedule D (Form

1040), whichever applies. If any net capital

gain is included on line 5, 6, or 7, Part IV

of Schedule D must be used to figure the

tax on the amount on line 8. See Pub. 929

for details on how to figure the net capital

gain included on line 8.

Line 15. Figure the tax using the Tax

Table, Tax Rate Schedule X, or Schedule

D, whichever applies. If line 14 includes

any net capital gain, use Schedule D to

figure the tax. See Pub. 929 for details on

how to figure the net capital gain included

on line 14.

Line 17. Figure the tax as if these rules did

not apply. For example, if the child has a

net capital gain, use Schedule D to figure

his or her tax.

Line 1. If the child had no earned income

(defined later), enter the child’s adjusted

gross income from Form 1040, line 33;

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

line 33.

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 “Sec. 644”

on the dotted line next to line 10.

Alternative Minimum Tax. A child whose

tax is figured on Form 8615 may owe the

alternative minimum tax. For details, see

Form 6251, Alternative Minimum Tax—

Individuals, and its instructions.

Amended return. If after the child’s return

is filed the parent’s taxable income

changes or the net investment income of

any of the parent’s other children changes,

the child’s tax must be refigured using the

adjusted amounts. If the child’s tax

changes, file Form 1040X, Amended U.S.

Individual Income Tax Return, to correct

the child’s tax.

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.

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB

control number. Books or records relating

to a form or its instructions must be

retained as long as their contents may

become material in the administration of

any Internal Revenue law. Generally, tax

returns and return information are

confidential, as required by section 6103.

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