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2024

Instructions for Form 8615

Tax for Certain Children Who Have Unearned Income

Section references are to the Internal Revenue Code unless                others. However, a scholarship received by your child isn’t 
otherwise noted.                                                          considered support if your child is a full-time student. For details, see 
                                                                          Pub. 501, Dependents, Standard Deduction, and Filing Information.
Future Developments                                                       Certain January 1 birthdays.     Use the following chart to determine 
                                                                          whether certain children with January 1 birthdays meet condition 3 
For the latest information about developments related to Form 8615        under Who Must File, earlier.
and its instructions, such as legislation enacted after they were 
published, go to IRS.gov/Form8615.
                                                                          IF you were born on...             THEN, at the end of 2024, 
                                                                                                             you are considered to be...
General Instructions
                                                                                 January 1, 2007                           18*
Purpose of Form
                                                                                 January 1, 2006                           19**
For children under age 18 and certain older children described 
below in Who Must File, unearned income over $2,600 is taxed at                  January 1, 2001                           24***
the parent's rate if the parent's rate is higher than the child's. If the 
child's unearned income is more than $2,600, use Form 8615 to             * This child isn't under age 18. The child meets condition 3 only if the 
figure the child's tax.                                                   child didn't have earned income that was more than half of the child's 
                                                                          support. 
Unearned Income                                                           ** This child meets condition 3 only if the child was a full-time student 
Unearned income is generally all income other than salaries, wages,       who didn't have earned income that was more than half of the child's 
and other amounts received as pay for work actually performed             support. 
(earned income). It includes taxable interest, dividends, capital gains   *** Don’t use Form 8615 for this child.
(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                 The parent may be able to elect to report the child’s interest, 
(other than earned income) received as the beneficiary of a trust.        TIP    ordinary dividends, and capital gain distributions on the 
                                                                                 parent’s return. If the parent makes this election, the child 
     For more information about the special rules regarding               won’t have to file a return or Form 8615. However, the federal income 
 TIP scholarship and fellowship grants, see Chapter 1,                    tax on the child’s income, including qualified dividends and capital 
     Scholarships, Fellowship Grants, Grants and Tuition                  gain distributions, may be higher if this election is made. For more 
Reductions, in Pub. 970, Tax Benefits for Education.                      details, see Form 8814, Parents’ Election To Report Child's Interest 
                                                                          and Dividends.
Who Must File
Form 8615 must be filed for any child who meets all of the following      Which Parent’s Return To Use
conditions.                                                               If a child’s parents are married to each other and file a joint return, 
 1. The child had more than $2,600 of unearned income.                    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 
 2. The child is required to file a tax return.                           File a Joint Return next.
 3. The child either:
                                                                          Parents Who Don’t File a Joint Return
 a. Was under age 18 at the end of 2024,
                                                                          For parents who don’t file a joint return, the following discussions 
 b. Was age 18 at the end of 2024 and didn’t have earned                  explain which parent's tax return must be used to figure the tax.
         income that was more than half of the child's support, or
                                                                          Parents are married.    If the child's parents file separate returns, use 
 c. Was a full-time student at least age 19 and under age 24 at           the return of the parent with the greater taxable income.
         the end of 2024 and didn’t have earned income that was           Parents not living together.       If the child's parents are married to 
         more than half of the child's support.                           each other but not living together, and the parent with whom the 
     (Earned income is defined later. Support is defined below.)          child lives (the custodial parent) is considered unmarried, use the 
                                                                          return of the custodial parent. If the custodial parent isn’t considered 
 4. At least one of the child's parents was alive at the end of 2024.     unmarried, use the return of the parent with the greater taxable 
 5. The child doesn’t file a joint return for 2024.                       income.
                                                                          For an explanation of when a married person living apart from 
 For these rules, the term “child” includes a legally adopted child       their spouse is considered unmarried, see Head of Household in 
and a stepchild. These rules apply whether or not the child is a          Pub. 501.
dependent. These rules don’t apply if neither of the child’s parents 
were living at the end of the year.                                       Parents are divorced.    If the child's parents are divorced or legally 
                                                                          separated, and the parent who had custody of the child for the 
Support. Your support includes all amounts spent to provide the           greater part of the year (the custodial parent) hasn’t remarried, use 
child with food, lodging, clothing, education, medical and dental         the return of the custodial parent.
care, recreation, transportation, and similar necessities. To figure 
your child’s support, count support provided by you, your child, and 
                                      Instructions for Form 8615 (2024)  Catalog Number 28914R
Sep 25, 2024                        Department of the Treasury  Internal Revenue Service  www.irs.gov

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  Custodial parent remarried.   If the custodial parent has 
remarried, the stepparent (rather than the noncustodial parent) is         Alternative Minimum Tax (AMT)
treated as the child's other parent. Therefore, if the custodial parent    A child may be subject to AMT if the child has certain items given 
and the stepparent file a joint return, use that joint return. Don’t use   preferential treatment under the tax law. These items include 
the return of the noncustodial parent.                                     accelerated depreciation and certain tax-exempt interest income. 
  If the custodial parent and the stepparent are married, but file         The AMT may also apply if you have passive activity losses or 
separate returns, use the return of the one with the greater taxable       certain distributions from estates or trusts.
income. If the custodial parent and the stepparent are married but         For details, see Form 6251, Alternative Minimum 
not living together, the earlier discussion under Parents not living       Tax—Individuals, and its instructions.
together applies.
Parents never married.  If a child's parents have never been               Net Investment Income Tax (NIIT)
married to each other, but lived together all year, use the return of      A child whose tax is figured on Form 8615 may be subject to the 
the parent with the greater taxable income. If the parents didn’t live     NIIT. NIIT is a 3.8% tax on the lesser of net investment income or the 
together all year, the rules explained earlier under Parents are           excess of the child’s modified adjusted gross income (MAGI) over 
divorced apply.                                                            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      If the child’s parents were married to each other and filed a joint 
of the parents' other children isn't known by the original due date of     return, enter the name and SSN of the parent who is listed first on 
the child's return, the child should request an extension of time to file  the joint return. On line C, check the box for the parent's filing status.
using Form 4868, Application for Automatic Extension of Time To 
File U.S. Individual Income Tax Return.                                    If the parents were married but filed separate returns, enter the 
                                                                           name and SSN of the parent who had the higher taxable income. If 
         An extension of time to file isn’t an extension of time to pay.   you don’t know which parent had the higher taxable income, see 
CAUTION!                                                                   Which Parent's Return To Use, earlier.
                                                                           If the parents were unmarried, treated as unmarried for federal 
Parent with different tax year. If the parent and the child don’t          income tax purposes, or separated by either a divorce or separate 
have the same tax year, complete Form 8615 using the information           maintenance decree, enter the name and SSN of the parent with 
on the parent's return for the tax year that ends in the child's tax year. whom the child resided for the greater part of the calendar year. See 
  Example.    Kimberly must use her mother's tax and taxable               the definition of custodial parent in Pub. 501.
income to complete her Form 8615 for calendar year 2024 (January           Exceptions. If the custodial parent remarried and filed a joint return 
1–December 31). Kimberly's mother files her tax return on a fiscal         with their new spouse, enter the name and SSN of the person listed 
year basis (July 1–June 30). Kimberly must use the information on          first on the joint return, even if that person isn’t the child’s parent. If 
her mother's return for the tax year ending June 30, 2024, to              the custodial parent and their new spouse filed separate returns, 
complete her 2024 Form 8615.                                               enter the name and SSN of the person with the higher taxable 
Parent's return information unavailable. If a child can’t get the          income, even if that person isn’t the child’s parent.
required information about their parent's tax return, the child (or the    If the parents were unmarried but lived together during the year 
child's legal representative) can request the necessary information        with the child, enter the name and SSN of the parent who had the 
from the IRS.                                                              higher taxable income.
  How to request. After the end of the tax year, send a signed, 
written request for the information to the Internal Revenue Service        Line 1
Center where the parent's return will be filed. (The IRS can’t process     If the child had no earned income (defined below), enter the child’s 
a request received before the end of the tax year.)                        adjusted gross income from Form 1040 or 1040-NR, line 11.
  The request must contain all of the following.                           If the child had earned income, use the Child's Unearned Income 
• A statement that you are making the request to comply with               Worksheet, later, to figure the amount to enter on line 1. But use the 
  section 1(g) of the Internal Revenue Code and that you have              Alternate Worksheet for Form 8615, Line 1 to figure the amount to 
  tried to get the information from the parent.                            enter on line 1 if the child:
• Proof of the child's age (for example, a copy of the child's birth       • Files Form 2555 (relating to foreign earned income),
  certificate).                                                            • Has a net loss from self-employment, or
• Evidence the child has more than $2,600 of unearned income               • Claims a net operating loss deduction.
  (for example, a copy of the child's prior year tax return or copies 
  of Forms 1099 for the current year).                                     Earned income. Earned income includes wages, tips, and other 
• The name, address, social security number (SSN) (if known),              payments received for personal services performed.
  and filing status (if known) of the parent whose information is to       If the child is a sole proprietor or a partner in a trade or business 
  be shown on Form 8615.                                                   in which both personal services and capital are material 
  A child's legal representative making the request should include a       income-producing factors, earned income also includes a 
copy of their Power of Attorney, such as Form 2848, or proof of legal      reasonable allowance for compensation for personal services, but 
guardianship.                                                              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 
Amended Return                                                             self-employment tax). However, the 30% limit doesn’t apply if there 
If the parents’ income changes after the child’s return is filed, the      are no net profits from the trade or business.
child’s tax must be refigured using the adjusted amounts. The child's      If capital isn’t an income-producing factor and the child’s personal 
tax must also be refigured if there are changes to the net unearned        services produced the business income, all of the child’s gross 
income of other children for whom the parent is required to file a         income from the trade or business is considered earned income. In 
Form 8615. If the child's tax changes, file Form 1040-X.                   that case, earned income is generally the total of the amounts 
                                                                           reported on Form 1040 or 1040-NR, line 1z, and Schedule 1 (Form 
                                                                           1040), lines 3 and 6.

2                                                                                                                Instructions for Form 8615

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Earned income also includes any taxable distribution from a Alternate Worksheet for Form 8615, Line 1
qualified disability trust. A qualified disability trust is any nongrantor
trust: A. Enter the amount from your child’s Form 1040 or
1040-NR, line 9 . . . . . . . . . . . . . . . . . . . . . . . .
1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established B. Enter the total of any net loss from self-employment,
solely for the benefit of an individual under 65 years of age who any net operating loss deduction, any foreign earned
is disabled, and income exclusion, and any foreign housing exclusion
2. All the beneficiaries of which are determined by the from your child’s Form 1040 or 1040-NR. Enter this
Commissioner of Social Security to have been disabled for total as a positive number (greater than zero) . . . . .
some part of the tax year within the meaning of 42 U.S.C. C. Add line A and line B and enter the total . . . . . . . .
1382c(a)(3). D. Enter your child’s earned income plus any amount from
your child’s Schedule 1 (Form 1040), line 18 . . . . . .
A trust won’t fail to meet (2) above just because the trust’s corpus Generally, your child’s earned income is the total of the
may revert to a person who isn’t disabled after the trust ceases to amounts reported on Form 1040 or 1040-NR, line 1z;
have any disabled beneficiaries. and Schedule 1 (Form 1040), lines 3 and 6 (if Schedule
Nontaxable income. For this purpose, unearned income 1 (Form 1040), line 3 or 6 is a loss, use zero)
includes only amounts your child must include in gross income. E. Subtract line D from line C. Enter the result here and on
Nontaxable unearned income, such as tax-exempt interest and the Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . .
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 Trust income. If your child is the beneficiary of a trust,
against capital gains. If the capital losses are more than the capital distributions of taxable interest, dividends, capital gains, and other
gains, the difference (up to $3,000 ($1,500 in the case of a married unearned income from the trust are unearned income to your child.
individual filing a separate return)) is subtracted from your child’s Taxable distributions from a qualified disability trust are
interest, dividends, and other unearned income. Any difference over ! considered earned income for the purposes of completing
$3,000 is carried to the next year. CAUTION Form 8615.

However, only certain directly connected expenses, such as
Child’s Unearned Income ! interest and deductible amortizable bond premiums, are
Worksheet—Line 1 CAUTION deductible in tax years 2018 through 2025.
Keep for Your Records 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
1. Enter the amount from the child’s Form 1040 or 1040-NR, withdrawal of savings.
line 9, whichever applies . . . . . . . . . . . . . . . . . . . .
2. Enter the child’s earned income (defined earlier) plus the Line 2
amount of any penalty on early withdrawal of savings from
the child’s Schedule 1 (Form 1040), line 18, whichever If the child doesn't itemize deductions on Schedule A (Form 1040),
applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . enter $2,600 on line 2.
3. Subtract line 2 from line 1. Enter the result here and on If the child itemizes deductions, enter on line 2 the larger of:
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . .
1. $1,300 plus the portion of the amount on Schedule A (Form
1040), line 17 (or Schedule A (Form 1040-NR), line 8), that is
Income from property received as a gift. Your child’s directly connected with the production of the unearned income
unearned income includes all income produced by property on Form 8615, line 1; or
belonging to your child. This is true even if the property was
transferred to your child, regardless of when the property was 2. $2,600.
transferred or purchased or who transferred it. Directly connected. Itemized deductions are directly connected
Example. Amanda Black, age 13, received the following with the production of unearned income if they are for expenses to
income. produce or collect taxable income or to manage, conserve, or
• Dividends—$1,300. maintain property held for producing income. These expenses
• Wages—$2,100. include custodian fees and service charges, service fees to collect
• Taxable interest—$1,400. taxable interest and dividends, and certain investment counsel fees.
• Tax-exempt interest—$100.
• Capital gains—$300. For tax years 2018 through 2025, miscellaneous itemized
• Capital losses—($200). ! deductions are suspended and not deductible.
CAUTION
The dividends were qualified dividends on stock given to her by her
grandparents. Example 1. Roger, age 12, has unearned income of $8,000, no
other income, no adjustments to income, and itemized deductions of
Amanda's unearned income is $2,700. This is the total of the $300 that are directly connected with his unearned income. His
dividends ($1,300), taxable interest ($1,400), and capital gains adjusted gross income is $8,000, which is entered on Form 1040,
reduced by capital losses ($300 − $200 = $100). Her wages are line 11, and on Form 8615, line 1. Roger enters $2,600 on line 2
earned (not unearned) income because they are received for work because that is more than the total of $1,300 plus his directly
actually performed. Her tax-exempt interest isn’t included because it connected itemized deductions of $300 ($1,600).
is nontaxable.
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 $1,400 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 $2,700. This is the larger of:
1. $1,300 plus the $1,400 of directly connected itemized
deductions, or
Instructions for Form 8615 3

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2. $2,600. returns. The children's net unearned income amounts on line 5 of
their Forms 8615 are:
Line 3 • Sharon—$3,000,
Subtract line 2 from line 1 and enter the result on this line. If zero or • Jerry—$2,800, and
less, don’t complete the rest of the form. However, you must still • Mike—$3,200.
attach Form 8615 to your child’s tax return. Figure the tax on your Line 7 of Sharon's Form 8615 will show $6,000, the total of the
child’s taxable income in the normal manner. amounts on line 5 of Jerry's and Mike's Forms 8615.
Line 7 of Jerry's Form 8615 will show $6,200 ($3,000 + $3,200).
Line 4 Line 7 of Mike's Form 8615 will show $5,800 ($3,000 + $2,800).
Enter on line 4 your child’s taxable income from Form 1040 or
1040-NR, line 15. Line 8
Child files Form 2555. If the child files Form 2555 (relating to Enter on this line the total of lines 5, 6, and 7. You must determine
foreign earned income), enter the amount from line 3 of the child's the amount of net capital gain and qualified dividends included on
Foreign Earned Income Tax Worksheet (in the Instructions for Form this line before completing line 9.
1040), instead of the child's taxable income. 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
Line 5 Schedule D, line 16. If Schedule D isn’t required, it is the amount on
A child’s net unearned income can’t be more than their taxable Form 1040, 1040-SR, or 1040-NR, line 7.
income. Enter on Form 8615, line 5, the smaller of line 3 or line 4. Qualified dividends. Qualified dividends are those dividends
This is the child’s unearned income. reported on line 3a of Form 1040 or 1040-NR.
If zero or less, don’t complete the rest of the form. However, you Net capital gain and qualified dividends on line 8. If neither the
must still attach Form 8615 to your child’s tax return. Figure the tax child, nor the parent, nor any other child has net capital gain, the net
on your child’s taxable income in the normal manner. 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
Figuring a Tentative Tax at the identified on lines A and B of Form 8615.)
Parent’s Tax Rate If neither the child, nor the parent, nor any other child has
qualified dividends, the amount of qualified dividends on line 8 is
The next step in completing Form 8615 is to figure a tentative tax on zero.
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 If the child, the parent, or any other child has net capital gain,
on the parent's taxable income figured with the child's net unearned figure the amount of net capital gain included on line 8 by adding
income (plus the net unearned income of any other child whose together the net capital gain amounts included on lines 5, 6, and 7.
Form 8615 includes the tax return information of that parent) and the If the child, the parent, or any other child has qualified dividends,
tax figured without it. figure the amount of qualified dividends included on line 8 by adding
When figuring the tentative tax at the parent's tax rate on Form together the qualified dividend amounts included on lines 5, 6, and
8615, don’t refigure any of the exclusions, deductions, or credits on 7. Use the following discussions to find these amounts.
the parent's return because of the child's net unearned income. For Net capital gain or qualified dividends on line 5. If the child
example, don’t refigure the medical expense deduction. has a net capital gain or qualified dividends, use the appropriate
Figure the tentative tax on Form 8615, lines 6 through 13. Line 5 Worksheet in these instructions to find the amount included
on line 5. These worksheets are needed to adjust the child's net
Line 6 capital gain and qualified dividends by the appropriate allocated
amount of the child's deductions.
Enter on line 6 the amount from the parent's Form 1040, 1040-SR, or Net capital gain or qualified dividends on line 6. If the parent
1040-NR, line 15, even if your spouse isn't the child's parent. If the has a net capital gain, its full amount is the net capital gain included
parent's taxable income is zero or less, enter zero on line 6. on line 6. If the parent has qualified dividends, the full amount is the
Parent files Form 2555. If the parent files Form 2555 to claim the amount of qualified dividends included on line 6.
foreign earned income exclusion, housing exclusion, or housing Net capital gain or qualified dividends on line 7. The net
deduction, the Foreign Earned Income Tax Worksheet in the capital gain included on line 7 is the total of the amounts of net
Instructions for Form 1040 is used to figure the parent's tax. Enter capital gain included on line 5 of the other children's Forms 8615.
the amount from line 3 of the Foreign Earned Income Tax Worksheet The qualified dividends included on line 7 are the total of the
as the parent's taxable income, on line 6 of Form 8615. amounts of qualified dividends included on line 5 of the other
children's Forms 8615. Find these amounts for each other child as
Line 7 explained under Net capital gain or qualified dividends on line 5,
If the tax return information of the parent is also used on any other earlier. (Don’t attach the other children's Forms 8615 to this child's
child's Form 8615, enter on line 7 the total of the amounts from line 5 return.)
of all the other children's Forms 8615 being completed. (The term
"other child" means any other child whose Form 8615 uses the tax Note. The amount of any net capital gain or qualified dividends isn’t
information of the parent identified on lines A and B of Form 8615.) separately reported on line 8. It is needed, however, when figuring
the tax on line 9.
Example. Paul and Jane Persimmon have three children,
Sharon, Jerry, and Mike, who must attach Form 8615 to their tax

4 Instructions for Form 8615

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2024 Line 5 Worksheet #1                                                                                                              Keep for Your Records
Use this worksheet only if line 2 of the child's Form 8615 is $2,600 and lines 3 and 5 are the same amount.

1. Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            1.                    
2. Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         2.                    
3. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        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. Multiply $2,600 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      6.                    
7. Multiply $2,600 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      7.                    
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.                    

Instructions for Form 8615                                                                                                                                 5

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2024 Line 5 Worksheet #2                                                                                                                      Keep for Your Records
Use this worksheet only if line 2 of the child's Form 8615 is more than $2,600 and lines 3 and 5 of the child's Form 
8615 are the same amount.

  1.  Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1.                    
  2.  Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              2.                    
  3.  Add lines 1 and 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.  Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       6.                    
  7.  Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           7.                    
  8.  Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           8.                    
  9.  Subtract line 6 from line 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          9.                    
  10. Enter the amount from the child's Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             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. Multiply $1,300 by line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            13.                   
  14. Multiply $1,300 by line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            14.                   
  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. 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    16.                   

6                                                                                                                                             Instructions for Form 8615

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2024 Line 5 Worksheet #3                                                                                                                         Keep for Your Records
Use this worksheet only if the child's Form 8615, line 5, is less than line 3.

  1.     Enter the child's qualified dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 1.                    
  2.     Enter the child's net capital gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              2.                    
  3.     Add lines 1 and 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.     Multiply line 4 by line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       6.                    
  7.     Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           7.                    
  8.     Subtract line 7 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           8.                    
  9.     Subtract line 6 from line 1  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          9.                    
  10.    Enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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.    Add lines 10 and 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         12.                   
  13.    Enter the child's adjusted gross income (Form 1040 or 1040-NR, line 11) . . . . . . . . . .                                             13.                   
  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.    Multiply line 12 by line 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         15.                   
  16.    Multiply line 15 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        16.                   
  17.    Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             17.                   
  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. 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) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          19.                   

Line 9                                                                Child files Form 2555.  If line 8 includes any net capital gain or 
                                                                      qualified dividends and the child, or any other child filing Form 8615, 
Figure the tax on the amount on line 8 using the Tax Table, the Tax   also files Form 2555, see Using the Schedule D Tax Worksheet for 
Computation Worksheet, the Qualified Dividends and Capital Gain       line 9 tax, later, to figure the line 9 tax.
Tax Worksheet (in the Instructions for Form 1040 (and 1040-SR), or 
the Instructions for Form 1040-NR), the Schedule D Tax Worksheet      Using the Qualified Dividends and Capital Gain Tax Worksheet 
(in the Schedule D instructions), or Schedule J (Form 1040), as       for line 9 tax. If you use the Qualified Dividends and Capital Gain 
follows.                                                              Tax Worksheet to figure the line 9 tax, complete that worksheet as 
• If line 8 doesn’t include any net capital gain or qualified         follows.
  dividends, use the Tax Table or Tax Computation Worksheet to        1. On line 1, enter the amount from Form 8615, line 8.
  figure this tax. But if Schedule J is used to figure the tax on the 
  parent's return, use it to figure this tax.                         2. On line 2, enter the amount of qualified dividends included on 
• If line 8 includes any net capital gain or qualified dividends, use Form 8615, line 8. (See the instructions for line 8.)
  the Qualified Dividends and Capital Gain Tax Worksheet to 
  figure this tax. For details, see the instructions for Form 8615,   3. On line 3, enter the amount of the net capital gain included on 
  line 9. However, if the child, the parent, or any other child has   Form 8615, line 8. (See the instructions for line 8.)
  28% rate gain or unrecaptured section 1250 gain, use the            4. Complete line 4 following the worksheet instructions.
  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.          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.

Instructions for Form 8615                                                                                                                                            7

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6. Determine whether there is a line 8 capital gain excess. To do child's Form 8615 over the child’s taxable income on Form
this, subtract from line 1 of this worksheet the amount on line 2c 1040 or 1040-NR, line 15.)
of the parent's Foreign Earned Income Tax Worksheet. If the
result is more than zero, that amount is the line 8 capital gain b. Subtract (a) from the amount on line 1 of this Schedule D
excess. If the result is zero or less, there is no line 8 capital gain Tax Worksheet.
excess. c. Subtract (b) from the amount on line 10 of this Schedule D
7. If there is no line 8 capital gain excess, skip step 8 and go to Tax Worksheet. If the result is more than zero, that amount
step 9. is the line 8 capital gain excess. If the result is zero or less,
there is no line 8 capital gain excess.
8. If there is a line 8 capital gain excess, complete a second
Qualified Dividends and Capital Gain Tax Worksheet (in its 11. If there is no line 8 capital gain excess, skip step 12 below and
entirety using steps 1 through 7), and with the following go to step 13.
additional modifications. 12. If there is a line 8 capital gain excess, complete a second
a. Reduce the amount you would otherwise enter on line 3 Schedule D Tax Worksheet as instructed above and in step 13
(but not below zero) by the line 8 capital gain excess. but in its entirety and with the following additional modifications.
(These modifications are to be made only for purposes of filling
b. Reduce the amount you would otherwise enter on line 2 out this additional Schedule D Tax Worksheet.)
(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.
9. Complete lines 5 through 25 following the worksheet
instructions. Use the parent's filing status to complete lines 6, b. Reduce the amount you would otherwise enter on line 6
13, 22, and 24. (but not below zero) by any of the line 8 capital gain excess
not used in (a) above.
Enter the amount from line 25 of the Qualified Dividends and c. If the child, the parent, or any other child has 28% rate gain,
Capital Gain Tax Worksheet on Form 8615, line 9, and check the box reduce the amount you would otherwise enter on line 8 of
on that line. Don’t attach this worksheet to the child's return. Worksheet 1 for Line 11 of the Schedule D Tax
Using the Schedule D Tax Worksheet for line 9 tax. Use the Worksheet—28% Rate Gain (Line 9 Tax), shown later, (but
Schedule D Tax Worksheet (in the Schedule D instructions) to figure not below zero) by the line 8 capital gain excess, and
the tax on line 9, if the child, the parent, or any other child has refigure the amount on line 11 of this Schedule D Tax
unrecaptured section 1250 gain or 28% rate gain. If you must use Worksheet.
the Schedule D Tax Worksheet, first complete any Schedule D and d. If the child, the parent, or any other child has unrecaptured
any actual Schedule D Tax Worksheet required for the child, the section 1250 gain, reduce the amount you would otherwise
parent, or any other child. Then, figure the line 9 tax using another enter on line 8 of Worksheet 2 for Line 11 of the
Schedule D Tax Worksheet. (Don’t attach this Schedule D Tax Schedule D Tax Worksheet—Unrecaptured Section 1250
Worksheet to the child’s return.) Gain (Line 9 Tax) (but not below zero) by the line 8 capital
Complete this Schedule D Tax Worksheet as follows. gain excess not used in step 12c above, and refigure the
1. On line 1, enter the amount from Form 8615, line 8. amount on line 11 of this Schedule D Tax Worksheet.
2. On line 2, enter the qualified dividends included on Form 8615, 13. Complete lines 12 through 47 following the worksheet
line 8. (See the earlier discussion for Form 8615, line 8.) 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
3. On line 3, enter the total of the amounts, if any, on line 4g of all Schedules D (Form 1040) filed by the child, the parent, or any
Forms 4952 filed by the child, the parent, or any other child. other child. Use the parent's filing status to complete lines 15,
4. On line 4, enter the total of the amounts, if any, on line 4e of all 44, and 46.
Forms 4952 filed by the child, the parent, or any other child. If Enter the amount from line 47 of this Schedule D Tax Worksheet
applicable, include instead the smaller amount entered on the on Form 8615, line 9, and check the box on that line. Don’t attach
dotted line next to line 4e. this worksheet to the child’s return.
5. On lines 5 and 6, follow the worksheet instructions. 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
6. On line 7, enter the net capital gain included on Form 8615, included in the net capital gain on Form 8615, line 8, using the
line 8. (See the earlier discussion for line 8.) following worksheet.
7. On lines 8 through 10, follow the worksheet instructions.
8. On line 11, enter zero if neither the child, nor the parent, nor any
other child has unrecaptured section 1250 gain (Schedule D,
line 19) or 28% rate gain (Schedule D, line 18).
Otherwise, enter the amount of unrecaptured section 1250
gain and 28% rate gain included in the net capital gain on Form
8615, line 8. Figure these amounts as explained later under
Figuring unrecaptured section 1250 gain (line 11) and Figuring
28% rate gain (line 11).
9. If the Foreign Earned Income Tax Worksheet was used to figure
the parent's tax or the tax of any child, go to step 10 below.
Otherwise, skip steps 10, 11, and 12 below, and go to step 13.
10. Determine whether there is a line 8 capital gain excess as
follows.
a. Add the amounts on line 2c of all Foreign Earned Income
Tax Worksheets completed by the parent or any child for
whom Form 8615 is filed. (But, for each child, don’t add
more than the excess, if any, of the amount on line 5 of the

8 Instructions for Form 8615

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           Worksheet 1 for Line 11 of the Schedule D Tax                      tax, except use the amount from line 3 of this worksheet 
                Worksheet—28% Rate Gain (Line 9 Tax)                          Schedule J (Form 1040) instead of the amount on Form 8615, 
1. Enter the amount, if any, from your child’s Schedule D (Form               line 8.
   1040), line 18 . . . . . . . . . . . . . . . . . . . . . . .               However, if the child, the parent, or any other child has 28% 
   If line 1 is zero or blank, skip lines 2 through 4, enter -0-              rate gain or unrecaptured section 1250 gain, use the 
   on line 5, and go to line 6.                                               Schedule D Tax Worksheet. Follow the earlier instructions 
2. Enter the amount, if any, from the last line of your child’s               under Using the Schedule D Tax Worksheet for line 9 tax, 
   completed Line 5 Worksheet. (See the line 8 instructions for               except use the amount on line 3 of this worksheet Schedule J 
   which Line 5 Worksheet to use.). . . . . . . . . . . . . .                 (instead of the amount on Form 8615, line 8) in step 1, above.
3. Enter the amount from line 2 of your child’s completed Line 5 
   Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .                5. On lines 5 through 16, enter the amounts from the parent's 
4. Divide line 2 by line 3. Enter the result as a decimal . . .               Schedule J, lines 5 through 16.
5. Multiply line 1 by line 4 . . . . . . . . . . . . . . . . . .              6. Complete lines 17 and 18 following the Schedule J (Form 1040) 
6. If no other child has 28% rate gain, enter -0-. Otherwise,                 instructions.
   repeat lines 1 through 5 above for each other child who has                7. On lines 19 through 22, enter the amounts from the parent's 
   28% rate gain and enter the total of the line 5 amounts for                Schedule J, lines 19 through 22.
   those other children . . . . . . . . . . . . . . . . . . . .    
7. Enter the amount, if any, from line 18 of the parent's                     8. Complete line 23 following the Schedule J instructions.
   Schedule D (Form 1040)     . . . . . . . . . . . . . . . . .    
8. Add lines 5, 6, and 7. Also include this amount on the                     Enter the amount from line 23 of this worksheet Schedule J on 
   Schedule D Tax Worksheet, line 11 . . . . . . . . . . . .                  Form 8615, line 9, and check the box on that line.

                                                                              Line 10
Figuring unrecaptured section 1250 gain (line 11).                 If the     Enter on line 10 the amount from Form 1040, 1040-SR, or 1040-NR, 
child, the parent, or any other child has unrecaptured section 1250           line 16. Don’t include the tax, if any, from Form 4972 or Form 8814 or 
gain, figure the amount of unrecaptured section 1250 gain included            any tax from recapture of an education credit.
in the net capital gain on Form 8615, line 8, using the following             Parent files Form 2555. If the Foreign Earned Income Tax 
worksheet.                                                                    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 
           Worksheet 2 for Line 11 of the Schedule D                          of the parent's tax from Form 1040, line 16.
               Tax Worksheet—Unrecaptured 
                 Section 1250 Gain (Line 9 Tax)                               Line 11
1. Enter the amount, if any, from your child’s Schedule D, 
   line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . .              Subtract line 10 from line 9 and enter the result on this line. This is 
   If line 1 is zero or blank, skip lines 2 through 4, enter -0-              the tentative tax.
   on line 5, and go to line 6.
2. Enter the amount, if any, from the last line of your child’s               If line 7 is blank, skip lines 12a and 12b and enter the amount 
   completed Line 5 Worksheet. (See the line 8 instructions for               from line 11 on line 13. Also skip the discussion for lines 12a and 
   which Line 5 Worksheet to use.). . . . . . . . . . . . . .                 12b that follows.
3. Enter the amount from line 2 of your child’s completed Line 5 
   Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .                Lines 12a and 12b
4. Divide line 2 by line 3. Enter the result as a decimal . . .               If an amount is entered on line 7, divide the tentative tax shown on 
5. Multiply line 1 by line 4. . . . . . . . . . . . . . . . . . .             line 11 among the children according to each child's share of the 
6. If no other child has unrecaptured section 1250 gain,                      total net unearned income. This is done on lines 12a, 12b, and 13. 
   enter -0-. Otherwise, repeat lines 1 through 5 for each other              Add the amount on line 7 to the amount on line 5 and enter the total 
   child who has unrecaptured section 1250 gain and enter the                 on line 12a. Divide the amount on line 5 by the amount on line 12a 
   total of the line 5 amounts for those children . . . . . . .               and enter the result, as a decimal, on line 12b.
7. Enter the amount, if any, from line 19 of the parent's                     Example.     In the earlier example under Line 7, Sharon's Form 
   Schedule D (Form 1040)     . . . . . . . . . . . . . . . . .    
                                                                              8615 shows $6,000 on line 7. The amount entered on line 12a is 
8. Add lines 5, 6, and 7. Also include this amount on the                     $9,000, the total of the amounts on lines 5 and 7 ($3,000 + $6,000). 
   Schedule D Tax Worksheet, line 11 . . . . . . . . . . . .       
                                                                              The decimal on line 12b is 0.333, figured as follows and rounded to 
                                                                              three places.

Using Schedule J (Form 1040) for line 9 tax.                If any farming or                   $3,000
                                                                                                          = 0.333
fishing income is included on line 8, the tax may be less if you use                            $9,000
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        Line 13
8615. (Don’t attach this worksheet to the child's return.)                    If an amount is entered on line 7, multiply line 11 by the decimal on 
Complete this worksheet Schedule J as follows.                                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               Figuring the Child's Tax
   Schedule J, lines 2a, 2b, and 2c.                                          The final step in figuring the child’s tax is to determine the larger of:
3. Complete line 3 following the Schedule J instructions.                     1. The total of:
4. Complete line 4. If Form 8615, line 8, includes any net capital            a. The child’s share of the tentative tax based on the parent's 
   gain, use the Qualified Dividends and Capital Gain Tax                        tax rate, plus
   Worksheet to figure the tax amount on this line.
   For details on how to use the worksheet, see Using the                     b. The tax on the child’s taxable income in excess of net 
   Qualified Dividends and Capital Gain Tax Worksheet for line 9                 unearned income, figured at the child’s tax rate; or

Instructions for Form 8615                                                                                                                             9

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2. The tax on the child’s taxable income, figured at the child’s tax Using the Schedule D Tax Worksheet for line 15 tax. Use the
rate. Schedule D Tax Worksheet (in the Schedule D instructions) to figure
This is the child’s tax. It is figured on Form 8615, lines 14 through the line 15 tax if the child has unrecaptured section 1250 gain or
18. 28% rate gain. Don’t attach this Schedule D Tax Worksheet to the
child’s return.
Line 14 Complete this Schedule D Tax Worksheet as follows.
If lines 4 and 5 of Form 8615 are the same, the child’s taxable 1. On line 1, enter the amount from Form 8615, line 14.
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 2. On line 2, enter the qualified dividends included on Form 8615,
discussion and the discussion for line 15 that follows. line 14. (See the earlier discussion of line 14.)
If lines 4 and 5 aren't the same, subtract line 5 from line 4 and 3. Leave lines 3 through 5 blank.
enter the result on line 14. Then, before completing line 15, you must 4. Enter the amount from line 2 on line 6.
determine the amount of net capital gain and qualified dividends, if
any, included on line 14. 5. On line 7, enter the net capital gain included on Form 8615,
line 14. (See the earlier discussion of line 14.)
Net capital gain and qualified dividends on line 14. If the child 6. Skip line 8.
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 7. Enter the amount from line 7 on line 9.
zero. 8. Complete line 10, following the worksheet instructions.
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 9. On line 11, enter zero if the child has no 28% rate gain
Line 5 Worksheet minus the amount from the last line of that (Schedule D, line 18) or unrecaptured section 1250 gain
worksheet. (See the earlier discussion of line 8.) (Schedule D, line 19).
Otherwise, see Worksheet 1 for Line 11 of the Schedule D
If the child has qualified dividends, the amount of qualified Tax Worksheet—28% Rate Gain (Line 9 Tax) and Worksheet 2
dividends included on line 14 is the amount from line 1 of the child’s for Line 11 of the Schedule D Tax Worksheet—Unrecaptured
completed Line 5 Worksheet minus the amount from the next to the Section 1250 Gain (Line 9 Tax) under Using the Schedule D
last line of that worksheet. (See the earlier discussion of line 8.) Tax Worksheet for line 9 tax, earlier.
For each worksheet you complete, subtract line 5 of that
Line 15 worksheet from line 1 of that worksheet, and include the result
Figure the tax using the Tax Table, Tax Computation Worksheet, on line 11 of this worksheet.
Qualified Dividends and Capital Gain Tax Worksheet, Schedule D
Tax Worksheet, or Schedule J, whichever applies. 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
If line 14 includes any net capital gain or qualified dividends, step 11.
TIP use the Qualified Dividends and Capital Gain Tax Worksheet 11. Determine whether there is a line 14 capital gain excess as
to figure this tax. However, if the child has to file Schedule D follows.
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 a. Subtract from line 2c of your Foreign Earned Income Tax
Using the Schedule D Tax Worksheet for line 15 tax, later, for Worksheet the excess, if any, of the amount on line 5 of the
instructions on how to figure the line 15 tax. child's Form 8615 over the child's taxable income on Form
1040 or 1040-NR, line 15.
Note. Before using the Qualified Dividends and Capital Gain Tax b. Subtract (a) from the amount on line 14 of Form 8615.
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. c. Subtract (b) from the amount on line 10 of this Schedule D
See Net capital gain and qualified dividends on line 14, earlier. 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,
Using the Qualified Dividends and Capital Gain Tax Worksheet there is no line 14 capital gain excess.
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 12. If there is no line 14 capital gain excess, skip step 13 below and
follows. go to step 14.
13. If there is a line 14 capital gain excess, complete a second
1. On line 1, enter the amount from Form 8615, line 14. Schedule D Tax Worksheet as instructed above and in step 14
2. On line 2, enter the amount of the qualified dividends included below but in its entirety and with the following additional
on Form 8615, line 14. (See Net capital gain and qualified modifications. (These modifications are to be made only for
dividends on line 14, earlier.) purposes of filling out this Schedule D Tax Worksheet.)
3. On line 3, enter the amount of the net capital gain included on a. Reduce the amount you would otherwise enter on line 9
Form 8615, line 14. (See Net capital gain and qualified (but not below zero) by the line 14 capital gain excess.
dividends on line 14, earlier.) b. Reduce the amount you would otherwise enter on line 6
4. Complete line 4 following the worksheet instructions. (but not below zero) by any of the line 14 capital gain
excess not used in (a) above.
5. Complete lines 5 through 25 following the worksheet
instructions. Use the child's filing status to complete lines 6, 13, c. If the child has 28% rate gain, reduce the amount you
22, and 24 of the worksheet. would otherwise enter on line 11, as figured in step 9, (but
not below zero) by the line 14 capital gain excess.
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. d. If the child has unrecaptured section 1250 gain, reduce the
amount you would otherwise enter on line 11, as figured in
Child files Form 2555. If line 14 includes any net capital gain or step 9, (but not below zero) by the line 14 capital gain
qualified dividends and the child files Form 2555, see Using the excess not used in (c) above.
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.

10 Instructions for Form 8615

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Enter the amount from line 47 of this Schedule D Tax Worksheet If line 4 includes any qualified dividends or net capital gain, use
on Form 8615, line 15, and check the box on that line. Don’t attach the Qualified Dividends and Capital Gain Tax Worksheet to figure the
this worksheet to your return. tax unless the Schedule D Tax Worksheet has to be used instead.
Using Schedule J (Form 1040) for line 15 tax. If Schedule J If any farming or fishing income is included on line 4, the tax may
applies, use it as a worksheet to figure the tax to enter on Form be less if you use Schedule J.
8615, line 15. On line 1 of this worksheet, enter the amount from
Form 8615, line 14. Complete lines 2a through 23 following the Child files Form 2555. If your child files Form 2555 and has a net
Schedule J instructions. Use the child’s filing status to complete lines capital gain or qualified dividends, figure the tax using the Qualified
4, 8, 12, and 16. Dividends and Capital Gain Tax Worksheet or the Schedule D Tax
Worksheet, whichever applies. To fill out that worksheet, follow the
Enter the amount from line 23 of this worksheet Schedule J on instructions in the footnote to the Foreign Earned Income Tax
Form 8615, line 15, and check the box on that line. Don’t attach this Worksheet (in the Instructions for Form 1040).
worksheet to the child’s return.
Line 18
Line 16 Enter on line 18 the larger of line 16 or line 17. Also enter this
Add lines 13 and 15 and enter the total on line 16. This is your child’s amount on the child’s Form 1040 or 1040-NR, line 16. This is the
tax figured at the parent's rate on net unearned income and the child’s tax.
child’s tax rate on other income.
Child files Form 2555. If your child files Form 2555, don't enter the
Line 17 amount from Form 8615, line 18, on the child's Form 1040 or
Figure the tax on the amount on line 4. Use the Tax Table, the Tax 1040-NR, line 16. Instead, enter the amount from Form 8615,
Computation Worksheet, the Qualified Dividends and Capital Gain line 18, on line 4 of the child's Foreign Earned Income Tax
Tax Worksheet, the Schedule D Tax Worksheet, or the child’s actual Worksheet. Then complete the rest of the Foreign Earned Income
Schedule J (Form 1040), whichever applies. Enter the tax amount on Tax Worksheet (in the Instructions for Form 1040) to figure the child’s
line 17. If the amount was figured using the Qualified Dividends and tax.
Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, or
Schedule J, check the box on that line.

Instructions for Form 8615 11

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