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Form 8615 Talimatlar

Form 8615 için talimatlar, Income

Rev. 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Form 8615  
Tax for Certain Children Who Have Unearned Income  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
c. Was a full-time student at least age 19 and under age 24 at  
the end of 2023 and didn’t have earned income that was  
more than half of the child's support.  
Future Developments  
(Earned income is defined later. Support is defined below.)  
4. At least one of the child's parents was alive at the end of 2023.  
5. The child doesn’t file a joint return for 2023.  
For the latest information about developments related to Form 8615  
and its instructions, such as legislation enacted after they were  
published, go to IRS.gov/Form8615.  
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  
were living at the end of the year.  
Reminders  
Election to modify the tax on your unearned income. Taxpayers  
may elect to modify their tax on dependent children with unearned  
income for tax years 2018 and 2019. The election allows taxpayers  
to recalculate the tax on dependent children with unearned income  
for these years to be based on the parent’s individual tax rate instead  
of the previous tax rates (condensed trust and estates tax rates).  
Support. Your support includes 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  
If you choose to modify the tax on your unearned income using  
the tentative tax based on the tax rate of your parent, you will need to  
use the 2018 or 2019 Instructions for Form 8615 and file an  
amended return, Form 1040-X, Amended U.S. Individual Income Tax  
Return.  
Generally, for a credit or refund, you must file Form 1040-X within  
3 years (including extensions) after the date you filed your original  
return or within 2 years after the date you paid the tax, whichever is  
later.  
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 on unearned income.”  
considered support if your child is a full-time student. For details, see  
Pub. 501, Dependents, Standard Deduction, and Filing Information.  
Certain January 1 birthdays. Use the following chart to determine  
whether certain children with January 1 birthdays meet condition 3  
under Who Must File, earlier.  
IF you were born on...  
THEN, at the end of 2023,  
you are considered to be...  
January 1, 2006  
January 1, 2005  
January 1, 2000  
18*  
19**  
24***  
General Instructions  
* This child isn't under age 18. The child meets condition 3 only if the  
child didn't have earned income that was more than half of the child's  
support.  
Purpose of Form  
For children under age 18 and certain older children described  
below in Who Must File, unearned income over $2,500 is taxed at  
the parent's rate if the parent's rate is higher than the child's. If the  
child's unearned income is more than $2,500, use Form 8615 to  
figure the child's tax.  
** This child meets condition 3 only if the child was a full-time student  
who didn't have earned income that was more than half of the child's  
support.  
*** Don’t use Form 8615 for this child.  
Unearned Income  
The parent may be able to elect to report the child’s interest,  
Unearned income is generally all income other than salaries, wages,  
and other amounts received as pay for work actually performed  
(earned income). It includes taxable interest, dividends, capital gains  
(including capital gain distributions), rents, royalties, pension and  
annuity income, taxable scholarship and fellowship grants not  
reported on Form W-2, unemployment compensation, alimony, the  
taxable part of social security and pension payments, and income  
(other than earned income) received as the beneficiary of a trust.  
ordinary dividends, and capital gain distributions on the  
parent’s return. If the parent makes this election, the child  
TIP  
won’t have to file a return or Form 8615. However, the federal income  
tax on the child’s income, including qualified dividends and 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  
Which Parent’s Return To Use  
Form 8615 must be filed for any child who meets all of the following  
conditions.  
If a child’s parents are married to each other and file a joint return,  
use the joint return to complete Form 8615. For other situations  
when the parents do not file a joint return, see Parents Who Don't  
File a Joint Return next.  
1. The child had more than $2,500 of unearned income.  
2. The child is required to file a tax return.  
3. The child either:  
Parents Who Don’t File a Joint Return  
For parents who don’t file a joint return, the following discussions  
explain which parent's tax return must be used to figure the tax.  
a. Was under age 18 at the end of 2023,  
b. Was age 18 at the end of 2023 and didn’t have earned  
income that was more than half of the child's support, or  
Nov 8, 2023  
Cat. No. 28914R  
     
Evidence the child has more than $2,500 of unearned income  
(for example, a copy of the child's prior year tax return or copies  
of Forms 1099 for the current year).  
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.  
The name, address, social security number (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 their Power of Attorney, such as Form 2848, or proof of legal  
guardianship.  
For an explanation of when a married person living apart from  
their spouse is considered unmarried, see Head of Household in  
Pub. 501.  
Amended Return  
If the parents’ income changes after the child’s return is filed, the  
child’s tax must be refigured using the adjusted amounts. The child's  
tax must also be refigured if there are changes to the net unearned  
income of other children for whom the parent is required to file a  
Form 8615. If the child's tax changes, file Form 1040-X.  
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.  
Alternative Minimum Tax (AMT)  
A child may be subject to AMT if the child 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 details, see Form 6251, Alternative Minimum  
Tax—Individuals, and its instructions.  
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.  
Net Investment Income Tax (NIIT)  
A child whose tax is figured on Form 8615 may be subject to the  
NIIT. NIIT is a 3.8% tax on the lesser of net investment income or the  
excess of the child’s modified adjusted gross income (MAGI) over  
the threshold amount. Use Form 8960, Net Investment Income Tax,  
to figure this tax. For more information on NIIT, go to IRS.gov/NIIT.  
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.  
Specific Instructions  
Incomplete Information for Filing  
Lines A–C  
If the parents' taxable income, filing status, or net unearned income  
of the parents' other children isn't known by the original due date of  
the child's return, the child should request an extension of time to file  
using Form 4868, Application for Automatic Extension of Time To  
File U.S. Individual Income Tax Return.  
If the child’s parents were married to each other and filed a joint  
return, enter the name and SSN of the parent who is listed first on  
the joint return. On line C, check the box for the parent's filing status.  
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 don’t know which parent had the higher taxable income, see  
An extension of time to file isn’t an extension of time to pay.  
!
CAUTION  
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 2023 (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, 2023, to  
complete her 2023 Form 8615.  
If the parents were unmarried, treated as unmarried for federal  
income tax purposes, or separated by either a divorce or separate  
maintenance decree, enter the name and SSN of the parent with  
whom the child resided for the greater part of the calendar year. See  
the definition of custodial parent in Pub. 501.  
Exceptions. If the custodial parent remarried and filed a joint return  
with their new spouse, enter the name and SSN of the person listed  
first on the joint return, even if that person isn’t the child’s parent. If  
the custodial parent and their new spouse filed separate returns,  
enter the name and SSN of the person with the higher taxable  
income, even if that person isn’t the child’s parent.  
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.  
Parent's return information unavailable. If a child can’t get the  
required information about their 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.)  
Line 1  
If the child had no earned income (defined below), enter the child’s  
adjusted gross income from Form 1040 or 1040-NR, line 11.  
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.  
If the child had earned income, use the Child's Unearned Income  
Worksheet, later, to figure the amount to enter on line 1. But use the  
enter on line 1 if the child:  
Proof of the child's age (for example, a copy of the child's birth  
certificate).  
Files Form 2555 (relating to foreign earned income),  
Has a net loss from self-employment, or  
-2-  
Instructions for Form 8615  
     
Claims a net operating loss deduction.  
Capital gains—$300.  
Capital losses—($200).  
Earned income. Earned income includes wages, tips, and other  
The dividends were qualified dividends on stock given to her by her  
payments received for personal services performed.  
grandparents.  
If the child is a sole proprietor or a partner in a trade or business  
in which both personal services and capital are material  
income-producing factors, earned income also includes a  
reasonable allowance for compensation for personal services, but  
not more than 30% of the child’s share of the net profits from that  
trade or business (after subtracting the deduction for one-half of  
self-employment tax). However, the 30% limit doesn’t apply if there  
are no net profits from the trade or business.  
Amanda's unearned income is $2,600. This is the total of the  
dividends ($1,200), taxable interest ($1,300), 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.  
Alternate Worksheet for Form 8615, Line 1  
If capital isn’t an income-producing factor and the child’s personal  
services produced the business income, all of the child’s gross  
income from the trade or business is considered earned income. In  
that case, earned income is generally the total of the amounts  
reported on Form 1040, line 1z; Schedule 1 (Form 1040), lines 3 and  
6; or Form 1040-NR, line 1z.  
Earned income also includes any taxable distribution from a  
qualified disability trust. A qualified disability trust is any nongrantor  
trust:  
A.  
B.  
Enter the amount from your child’s Form 1040 or  
1040-NR, line 9 . . . . . . . . . . . . . . . . . . . . . . . .  
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.  
D.  
Add line A and line B and enter the total . . . . . . . .  
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 1z;  
and Schedule 1 (Form 1040), lines 3 and 6 (if Schedule  
1 (Form 1040), line 3 or 6 is a loss, use zero)  
Subtract line D from line C. Enter the result here and on  
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . .  
1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established  
solely for the benefit of an individual under 65 years of age who  
is disabled, and  
2. All the beneficiaries of which are determined by the  
Commissioner of Social Security to have been disabled for  
some part of the tax year within the meaning of 42 U.S.C.  
1382c(a)(3).  
E.  
A trust won’t fail to meet (2) above just because the trust’s corpus  
may revert to a person who isn’t disabled after the trust ceases to  
have any disabled beneficiaries.  
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 ($1,500 in the case of a married  
individual filing a separate return)) is subtracted from your child’s  
interest, dividends, and other unearned income. Any difference over  
$3,000 is carried to the next year.  
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.  
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  
If the child doesn't itemize deductions on Schedule A (Form 1040),  
enter $2,500 on line 2.  
If the child itemizes deductions, enter on line 2 the larger of:  
1. $1,250 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  
Child’s Unearned Income  
Worksheet—Line 1  
Keep for Your Records  
2. $2,500.  
1. Enter the amount from the child’s Form 1040 or 1040-NR,  
line 9, whichever applies . . . . . . . . . . . . . . . . . . . .  
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.  
2. Enter the child’s earned income (defined earlier) plus the  
amount of any penalty on early withdrawal of savings from  
the child’s Schedule 1 (Form 1040), line 18, whichever  
applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Subtract line 2 from line 1. Enter the result here and on  
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . .  
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.  
For tax years 2018 through 2025, miscellaneous itemized  
deductions are suspended and not deductible.  
!
CAUTION  
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 $2,500 on line 2  
because that is more than the total of $1,250 plus his directly  
connected itemized deductions of $300 ($1,550).  
Example. Amanda Black, age 13, received the following  
income.  
Dividends—$1,200.  
Wages—$2,100.  
Taxable interest—$1,300.  
Tax-exempt interest—$100.  
-3-  
Instructions for Form 8615  
     
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 $1,300 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 $2,550. This is the larger of:  
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:  
1. $1,250 plus the $1,300 of directly connected itemized  
deductions, or  
Sharon—$900,  
Jerry—$700, and  
Mike—$1,100.  
2. $2,500.  
Line 7 of Sharon's Form 8615 will show $1,800, the total of the  
Line 3  
amounts on line 5 of Jerry's and Mike's Forms 8615.  
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 7 of Jerry's Form 8615 will show $2,000 ($900 + $1,100).  
Line 7 of Mike's Form 8615 will show $1,600 ($900 + $700).  
Line 8  
Line 4  
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 line 9.  
Enter on line 4 your child’s taxable income from Form 1040,  
1040-SR, or 1040-NR, line 15.  
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.  
Child files Form 2555. If the child files Form 2555 (relating to  
foreign earned income), enter the amount from line 3 of the child's  
Foreign Earned Income Tax Worksheet (in the Instructions for Form  
1040), instead of the child's taxable income.  
Qualified dividends. Qualified dividends are those dividends  
reported on line 3a of Form 1040 or 1040-NR.  
Line 5  
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. (The term “other child” means any other  
child whose Form 8615 uses the tax return information of the parent  
identified on lines A and B of Form 8615.)  
If neither the child, nor the parent, nor any other child has  
qualified dividends, the amount of qualified dividends on line 8 is  
zero.  
A child’s net unearned income can’t be more than their 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.  
Figuring a Tentative Tax at the  
Parent’s Tax Rate  
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.  
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 unearned income of any other child whose  
Form 8615 includes the tax return information of that parent) and the  
tax figured without it.  
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. Use the following discussions to find these amounts.  
Net capital gain or qualified dividends on line 5. If the child  
has a net capital gain or qualified dividends, use the appropriate  
Line 5 Worksheet in these instructions to find the amount included  
on line 5. These worksheets are needed to adjust the child's net  
capital gain and qualified dividends by the appropriate allocated  
amount of the child's deductions.  
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.  
Net capital gain or qualified dividends on line 6. If the parent  
has a net capital gain, its full amount is the net capital gain included  
on line 6. If the parent has qualified dividends, the full amount is the  
amount of qualified dividends included on line 6.  
Net capital gain or qualified dividends on line 7. The net  
capital gain included on line 7 is the total of the amounts of net  
capital gain included on line 5 of the other children's Forms 8615.  
The qualified dividends included on line 7 are the total of the  
amounts of qualified dividends included on line 5 of the other  
children's Forms 8615. Find these amounts for each other child as  
earlier. (Don’t attach the other children's Forms 8615 to this child's  
return.)  
Figure the tentative tax on Form 8615, lines 6 through 13.  
Line 6  
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.  
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 7  
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  
-4-  
Instructions for Form 8615  
     
Keep for Your Records  
2023 Line 5 Worksheet #1  
Use this worksheet only if line 2 of the child's Form 8615 is $2,500 and lines 3 and 5 are the same amount.  
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1.  
2.  
3.  
4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three places).  
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4.  
5. Divide line 2 by line 3. Enter the result as a decimal (rounded to at least three places).  
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5.  
6.  
7.  
6. Multiply $2,500 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
7. Multiply $2,500 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Qualified dividends on Form 8615, line 5. Subtract line 6 of this worksheet from line 1  
(but don’t enter less than zero or more than the amount on Form 8615, line 5) . . . . . .  
8.  
9. Net capital gain on Form 8615, line 5. Subtract line 7 of this worksheet from line 2 (but  
don’t enter less than zero or more than the excess of Form 8615, line 5, over line 8 of  
this worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
9.  
-5-  
Instructions for Form 8615  
Keep for Your Records  
2023 Line 5 Worksheet #2  
Use this worksheet only if line 2 of the child's Form 8615 is more than $2,500 and lines 3 and 5 of the child's Form  
8615 are the same amount.  
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1.  
2.  
3.  
4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three  
places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4.  
5. Enter the child's itemized deductions directly connected with the production of the  
child's qualified dividends or net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
5.  
6.  
7.  
8.  
6. Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
9. Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
10. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
9.  
10.  
11. Divide line 1 by line 10. Enter the result as a decimal (rounded to at least three places).  
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
11.  
12. Divide line 2 by line 10. Enter the result as a decimal (rounded to at least three places).  
Don’t enter more than 1.000 minus the amount on line 11 . . . . . . . . . . . . . . . . . . . . . . .  
12.  
13.  
14.  
13. Multiply $1,250 by line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
14. Multiply $1,250 by line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
15. Qualified dividends on Form 8615, line 5. Subtract line 13 from line 9 (but don’t  
enter less than zero or more than the amount on Form 8615, line 5) . . . . . . . . . . . . . . .  
15.  
16.  
16. Net capital gain on Form 8615, line 5. Subtract line 14 from line 8 (but don’t enter  
less than zero or more than the excess of Form 8615, line 5, over line 15 of this  
worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
-6-  
Instructions for Form 8615  
Keep for Your Records  
2023 Line 5 Worksheet #3  
Use this worksheet only if the child's Form 8615, line 5, is less than line 3.  
1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
1.  
2.  
3.  
4. Divide line 1 by line 3. Enter the result as a decimal (rounded to at least three  
places) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
4.  
5. If the child itemized deductions, enter the child's itemized deductions directly  
connected with the production of the income on line 3 . . . . . . . . . . . . . . . . . . . . . . . . . .  
5.  
6.  
7.  
8.  
6. Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
8. Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
9. Subtract line 6 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
10. Enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
9.  
10.  
11. If the child itemized deductions, enter the child's itemized deductions not directly  
connected with the production of the income shown on line 3 of this worksheet.  
Otherwise, enter the child's standard deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
11.  
12.  
13.  
12. Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
13. Enter the child's adjusted gross income (Form 1040 or 1040-NR, line 11) . . . . . . . . . .  
14. Divide line 3 by line 13. Enter the result as a decimal (rounded to at least three places).  
Don’t enter more than 1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
14.  
15.  
16.  
17.  
15. Multiply line 12 by line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
16. Multiply line 15 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
17. Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
18. Qualified dividends on Form 8615, line 5. Subtract line 16 of this worksheet from  
line 9. Enter the result here (but don’t enter less than zero or more than the amount on  
Form 8615, line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
18.  
19.  
19. Net capital gain on Form 8615, line 5. Subtract line 17 of this worksheet from line 8  
(but don’t enter less than zero or more than the excess of Form 8615, line 5, over  
line 18 of this worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  
also files Form 2555 or 2555-EZ, use Using the Schedule D Tax  
Worksheet for line 9 tax, later, to figure the line 9 tax.  
Line 9  
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  
Using the Qualified Dividends and Capital Gain Tax Worksheet  
for line 9 tax. If you use the Qualified Dividends and Capital Gain  
Tax Worksheet to figure the line 9 tax, complete that worksheet as  
follows.  
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.  
1. On line 1, enter the amount from Form 8615, line 8.  
2. On line 2, enter the amount of qualified dividends included on  
Form 8615, line 8. (See the instructions for line 8.)  
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.  
3. On line 3, enter the amount of the net capital gain included on  
Form 8615, line 8. (See the instructions for line 8.)  
4. Complete line 4 following the worksheet instructions.  
5. If the Foreign Earned Income Tax Worksheet was used to figure  
the parent's tax, go to step 6. Otherwise, skip steps 6, 7, and 8  
and go to step 9.  
Child files Form 2555. If line 8 includes any net capital gain or  
6. Determine whether there is a line 8 capital gain excess. To do  
this, subtract from line 1 of this worksheet the amount on line 2c  
qualified dividends and the child, or any other child filing Form 8615,  
-7-  
Instructions for Form 8615  
 
of the parent's Foreign Earned Income 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.  
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.  
7. If there is no line 8 capital gain excess skip step 8 and go to  
step 9.  
11. If there is no line 8 capital gain excess, skip step 12 below and  
go to step 13.  
8. If there is a line 8 capital gain excess, complete a second  
Qualified Dividends and Capital Gain Tax Worksheet, in its  
entirety using steps 1 through 7, and with the following  
additional modifications.  
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 3  
(but not below zero) by the line 8 capital gain excess.  
b. Reduce the amount you would otherwise enter on line 2  
(but not below zero) by any of the line 8 capital gain excess  
not used in (a).  
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.  
9. Complete lines 5 through 25 following the worksheet  
instructions. Use the parent's filing status to complete lines 6,  
13, 22, and 24.  
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.  
Enter the amount from line 25 of the Qualified Dividends and  
Capital Gain Tax Worksheet on Form 8615, line 9, and check the box  
on that line. Don’t attach this worksheet to the child's return.  
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.)  
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.  
Complete this Schedule D Tax Worksheet as follows.  
1. On line 1, enter the amount from Form 8615, line 8.  
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.  
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.  
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.  
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.  
Worksheet 1 for Line 11 of the Schedule D Tax  
Worksheet—28% Rate Gain (Line 9 Tax)  
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).  
1.  
Enter the amount, if any, from your child’s Schedule D (Form  
1040), line 18  
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If line 1 is zero or blank, skip lines 2 through 4, enter -0-  
on line 5, and go to line 6.  
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  
2.  
3.  
Enter the amount, if any, from the last line of your child’s  
completed Line 5 Worksheet. (See the line 8 instructions for  
which Line 5 Worksheet to use.)  
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Enter the amount from line 2 of your child’s completed Line 5  
Worksheet  
Divide line 2 by line 3. Enter the result as a decimal  
Multiply line 1 by line 4  
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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.  
4.  
5.  
6.  
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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  
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.)  
those other children  
Enter the amount, if any, from line 18 of the parent's  
Schedule D (Form 1040)  
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7.  
8.  
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Add lines 5, 6, and 7. Also include this amount on the  
Schedule D Tax Worksheet, line 11  
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-8-  
Instructions for Form 8615  
   
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.  
Line 10  
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.  
Parent files Form 2555. If the Foreign Earned Income Tax  
Worksheet (in the Instructions for Form 1040) was used to figure the  
parent's tax, enter the amount from line 4 of that worksheet, instead  
of the parent's tax from Form 1040, line 16.  
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  
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Line 11  
If line 1 is zero or blank, skip lines 2 through 4, enter -0-  
on line 5, and go to line 6.  
Subtract line 10 from line 9 and enter the result on this line. This is  
the tentative tax.  
2.  
3.  
Enter the amount, if any, from the last line of your child’s  
completed Line 5 Worksheet. (See the line 8 instructions for  
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.  
which Line 5 Worksheet to use.)  
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Enter the amount from line 2 of your child’s completed Line 5  
Worksheet  
Divide line 2 by line 3. Enter the result as a decimal  
Multiply line 1 by line 4  
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4.  
5.  
6.  
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Lines 12a and 12b  
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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.  
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  
Enter the amount, if any, from line 19 of the parent's  
Schedule D (Form 1040)  
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7.  
8.  
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Example. In the earlier example under Line 7, Sharon's Form  
8615 shows $1,800 on line 7. The amount entered on line 12a is  
$2,700, the total of the amounts on lines 5 and 7 ($900 + $1,800).  
The decimal on line 12b is 0.333, figured as follows and rounded to  
three places.  
Add lines 5, 6, and 7. Also include this amount on the  
Schedule D Tax Worksheet, line 11  
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Using Schedule J (Form 1040) for line 9 tax. If any farming or  
fishing income is included on line 8, the tax may be less if you use  
Schedule J. 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.)  
$900  
=
0.333  
$2,700  
Line 13  
Complete this worksheet Schedule J as follows.  
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.  
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.  
Figuring the Child's Tax  
The final step in figuring the child’s tax is to determine the larger of:  
1. The total of:  
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.  
a. The child’s share of the tentative tax based on the parent's  
tax rate, plus  
For details on how to use the worksheet, see Using the  
tax, except use the amount from line 3 of this worksheet  
Schedule J (Form 1040) instead of the amount on Form 8615,  
line 8.  
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.  
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  
except use the amount on line 3 of this worksheet Schedule J  
(instead of the amount on Form 8615, line 8) in step 1, above.  
This is the child’s tax. It is figured on Form 8615, lines 14 through  
18.  
Line 14  
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.  
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.  
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.  
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.  
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  
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Instructions for Form 8615  
   
Line 5 Worksheet minus the amount from the last line of that  
worksheet. (See the earlier discussion of line 8.)  
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.)  
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.  
Line 15  
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.  
Figure the tax using the Tax Table, Tax Computation Worksheet,  
Qualified Dividends and Capital Gain Tax Worksheet, Schedule D  
Tax Worksheet, or Schedule J, whichever applies.  
11. Determine whether there is a line 14 capital gain excess as  
follows.  
If line 14 includes any net capital gain or qualified dividends,  
use the Qualified Dividends and Capital Gain Tax Worksheet  
to figure this tax. However, if the child has to file Schedule D  
TIP  
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.  
and line 18 or line 19 of the child's Schedule D is more than zero,  
use the Schedule D Tax Worksheet to figure this tax instead. See  
instructions on how to figure the line 15 tax.  
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.  
Note. Before using the Qualified Dividends and Capital Gain Tax  
Worksheet to figure the line 15 tax, you will need to know the amount  
of net capital gain and qualified dividends, if any, included on line 14.  
12. If there is no line 14 capital gain excess, skip step 13 below and  
go to step 14.  
Using the Qualified Dividends and Capital Gain Tax Worksheet  
for line 15 tax. If you use the Qualified Dividends and Capital Gain  
Tax Worksheet to figure the line 15 tax, complete that worksheet as  
follows.  
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.)  
1. On line 1, enter the amount from Form 8615, line 14.  
2. On line 2, enter the amount of the qualified dividends included  
on Form 8615, line 14. (See Net capital gain and qualified  
dividends on line 14, earlier.)  
a. Reduce the amount you would otherwise enter on line 9  
(but not below zero) by the line 14 capital gain excess.  
3. On line 3, enter the amount of the net capital gain included on  
Form 8615, line 14. (See Net capital gain and qualified  
dividends on line 14, earlier.)  
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.  
4. Complete line 4 following the worksheet instructions.  
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.  
5. Complete lines 5 through 25 following the worksheet  
instructions. Use the child's filing status to complete lines 6, 13,  
22, and 24 of the worksheet.  
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.  
Enter the amount from line 25 on line 15 of Form 8615 and check  
the box on that line. Don’t attach this worksheet to the child's return.  
Child files Form 2555. If line 14 includes any net capital gain or  
qualified dividends and the child files Form 2555, see Using the  
Schedule D Tax Worksheet for line 15 tax next for instructions on  
how to figure the line 15 tax.  
14. Complete lines 12 through 47 following the worksheet  
instructions. Use the child's filing status to complete lines 15,  
44, and 46.  
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.  
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.  
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.)  
Line 16  
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.  
6. Skip line 8.  
7. Enter the amount from line 7 on line 9.  
8. Complete line 10, following the worksheet instructions.  
Line 17  
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).  
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  
-10-  
Instructions for Form 8615  
 
Schedule J (Form 1040), 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.  
If line 4 includes any qualified dividends or net capital gain, use  
the Qualified Dividends and Capital Gain Tax Worksheet to figure the  
tax unless the Schedule D Tax Worksheet has to be used instead.  
instructions in the footnote to the Foreign Earned Income Tax  
Worksheet (in the Instructions for Form 1040).  
Line 18  
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.  
If any farming or fishing income (including certain amounts  
received in connection with the Exxon Valdez litigation) is included  
on line 4, the tax may be less if you use Schedule J.  
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.  
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  
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Instructions for Form 8615