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

Who Have Investment Income of More Than $1,400 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

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. However, the Federal

income tax on the child’s income, including

capital gain distributions, may be higher if

this election is made. For more details, see

Form 8814, Parents’ Election To Report

Child’s Interest and Dividends.

Who Must File

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 $1,400 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), enter

$1,400. 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 39; Form 1040A, line 24; or Form 1040NR,

line 38 ©

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 39; Form 1040A, line 24; Form 1040EZ,

line 6; TeleFile Tax Record, line J; Form 1040NR, line 38; or Form 1040NR-EZ, line 14. If less

than zero, enter -0-

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

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

9

10 Enter the parent’s tax from Form 1040, line 40; Form 1040A, line 25; Form 1040EZ, line 10;

TeleFile Tax Record, line J; Form 1040NR, line 39; or Form 1040NR-EZ, line 15. If any tax is from

Form 4972 or 8814, see instructions. If Schedule D or J (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

11

11

12a Add lines 5 and 7 12a

b Divide line 5 by line 12a. Enter the result as a decimal (rounded to at least 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

15

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

or J (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

or J (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 40; Form 1040A, line 25; or

Form 1040NR, line 39 © 18

For Paperwork Reduction Act Notice, see back of form. Form 8615 (1998)

A B

C

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

Investment Income

Cat. No. 64113U

3

Part III

Part I

Part II

(99)

1998

For children under age 14, investment

income over $1,400 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 $1,400,

use this form to figure the child’s tax.

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.

Generally, Form 8615 must be filed for any

child who was under age 14 on January 1,

TIP: See Pub. 929, Tax Rules for Children

and Dependents, if the child, the parent, or

any of the parent’s other children under

age 14 received capital gain distributions

or farm income. It has information on how

to figure the tax using Schedule D or J,

which may result in less tax.

1999, had more than $1,400 of investment

income, and is required to file a tax return.

But if neither parent was alive on

December 31, 1998, do not use Form

8615. Instead, figure the child’s tax in the

normal manner.
Form 8615 (1998) Page 2

Line 6

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

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

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

deduction the child claims on Form 1040, line 30, or Form 1040NR,

line 30, 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

● $700 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.

● $1,400, 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

Line 15

Line 17

Line 1

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.

Alternative Minimum Tax

Amended Return

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 Internal

Revenue Code section 6103.

1.

2.

3.

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.

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.

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.

If the child had no earned income (defined

later), enter the child’s adjusted gross

income from Form 1040, line 34; Form

1040A, line 19; or Form 1040NR,

line 34.

If the child itemized deductions, enter the

greater of:

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.

Figure the tax using the Tax Table, Tax

Rate Schedules, or Schedule D or J (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, unless

Schedule J may be used. See Pub. 929 for

details on how to figure the net capital

gain included on line 8. If any farm income

is included on line 5, 6, or 7, the tax may

be less if you use Schedule J.

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 4972, do not include

Figure the tax using the Tax Table, Tax

Rate Schedule X, or Schedule D or J,

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. If any farm income is included on

line 14, the tax may be less if you use

Schedule J.

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.

Additional Information

Incomplete Information for Parent

or Other Children

For more details, see Pub. 929.

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. any tax from that form on line 10. If the

parent filed Form 8814, enter “Form 8814”

and the total tax from line 9 of Form(s)

8814 on the dotted line next to line 10 of

Form 8615.