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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                       c. Was a full-time student at least age 19 and under age 24 at 
otherwise noted.                                                                  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.)
For the latest information about developments related to Form 8615        4. At least one of the child's parents was alive at the end of 2023.
and its instructions, such as legislation enacted after they were         5. The child doesn’t file a joint return for 2023.
published, go to IRS.gov/Form8615.
                                                                          For these rules, the term “child” includes a legally adopted child 
Reminders                                                                 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 
Election to modify the tax on your unearned income. Taxpayers             were living at the end of the year.
may elect to modify their tax on dependent children with unearned 
income for tax years 2018 and 2019. The election allows taxpayers         Support. Your support includes all amounts spent to provide the 
to recalculate the tax on dependent children with unearned income         child with food, lodging, clothing, education, medical and dental 
for these years to be based on the parent’s individual tax rate instead   care, recreation, transportation, and similar necessities. To figure 
of the previous tax rates (condensed trust and estates tax rates).        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            considered support if your child is a full-time student. For details, see 
the tentative tax based on the tax rate of your parent, you will need to  Pub. 501, Dependents, Standard Deduction, and Filing Information.
use the 2018 or 2019 Instructions for Form 8615 and file an 
amended return, Form 1040-X, Amended U.S. Individual Income Tax           Certain January 1 birthdays.     Use the following chart to determine 
Return.                                                                   whether certain children with January 1 birthdays meet condition 3 
 Generally, for a credit or refund, you must file Form 1040-X within      under Who Must File, earlier.
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    IF you were born on...             THEN, at the end of 2023, 
later.                                                                                                       you are considered to be...
 See IRS.gov/Form1040X for more information about amending a 
tax return. If you make this election, include a statement or an                 January 1, 2006                            18*
attachment with your amended return specifying “election to modify 
tax on unearned income.”                                                         January 1, 2005                            19**
                                                                                 January 1, 2000                            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 
Purpose of Form                                                           support. 
For children under age 18 and certain older children described            ** This child meets condition 3 only if the child was a full-time student 
below in Who Must File, unearned income over $2,500 is taxed at           who didn't have earned income that was more than half of the child's 
the parent's rate if the parent's rate is higher than the child's. If the support. 
child's unearned income is more than $2,500, use Form 8615 to             *** Don’t use Form 8615 for this child.
figure the child's tax.

Unearned Income
Unearned income is generally all income other than salaries, wages,              The parent may be able to elect to report the child’s interest, 
and other amounts received as pay for work actually performed             TIP    ordinary dividends, and capital gain distributions on the 
(earned income). It includes taxable interest, dividends, capital gains          parent’s return. If the parent makes this election, the child 
(including capital gain distributions), rents, royalties, pension and     won’t have to file a return or Form 8615. However, the federal income 
annuity income, taxable scholarship and fellowship grants not             tax on the child’s income, including qualified dividends and capital 
reported on Form W-2, unemployment compensation, alimony, the             gain distributions, may be higher if this election is made. For more 
taxable part of social security and pension payments, and income          details, see Form 8814, Parents’ Election To Report Child's Interest 
(other than earned income) received as the beneficiary of a trust.        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      If a child’s parents are married to each other and file a joint return, 
conditions.                                                               use the joint return to complete Form 8615. For other situations 
 1. The child had more than $2,500 of unearned income.                    when the parents do not file a joint return, see Parents Who Don't 
                                                                          File a Joint Return next.
 2. The child is required to file a tax return.
 3. The child either:                                                     Parents Who Don’t File a Joint Return
       a. Was under age 18 at the end of 2023,                            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.
       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

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Parents are married. If the child's parents file separate returns, use         • Evidence the child has more than $2,500 of unearned income 
the return of the parent with the greater taxable income.                        (for example, a copy of the child's prior year tax return or copies 
Parents not living together.    If the child's parents are married to            of Forms 1099 for the current year).
each other but not living together, and the parent with whom the               • The name, address, social security number (SSN) (if known), 
child lives (the custodial parent) is considered unmarried, use the              and filing status (if known) of the parent whose information is to 
return of the custodial parent. If the custodial parent isn’t considered         be shown on Form 8615.
unmarried, use the return of the parent with the greater taxable               A child's legal representative making the request should include a 
income.                                                                        copy of their Power of Attorney, such as Form 2848, or proof of legal 
For an explanation of when a married person living apart from                  guardianship.
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 
Parents are divorced.   If the child's parents are divorced or legally         child’s tax must be refigured using the adjusted amounts. The child's 
separated, and the parent who had custody of the child for the                 tax must also be refigured if there are changes to the net unearned 
greater part of the year (the custodial parent) hasn’t remarried, use          income of other children for whom the parent is required to file a 
the return of the custodial parent.                                            Form 8615. If the child's tax changes, file Form 1040-X.
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 
and the stepparent file a joint return, use that joint return. Don’t use       A child may be subject to AMT if the child has certain items given 
the return of the noncustodial parent.                                         preferential treatment under the tax law. These items include 
                                                                               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 
not living together, the earlier discussion under Parents not living           For details, see Form 6251, Alternative Minimum 
together applies.                                                              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          Net Investment Income Tax (NIIT)
the parent with the greater taxable income. If the parents didn’t live         A child whose tax is figured on Form 8615 may be subject to the 
together all year, the rules explained earlier under Parents are               NIIT. NIIT is a 3.8% tax on the lesser of net investment income or the 
divorced apply.                                                                excess of the child’s modified adjusted gross income (MAGI) over 
                                                                               the threshold amount. Use Form 8960, Net Investment Income Tax, 
Widowed parent remarried. If a widow or widower remarries, the                 to figure this tax. For more information on NIIT, go to IRS.gov/NIIT.
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
If the parents' taxable income, filing status, or net unearned income          Lines A–C
of the parents' other children isn't known by the original due date of         If the child’s parents were married to each other and filed a joint 
the child's return, the child should request an extension of time to file      return, enter the name and SSN of the parent who is listed first on 
using Form 4868, Application for Automatic Extension of Time To                the joint return. On line C, check the box for the parent's filing status.
File U.S. Individual Income Tax Return.
         An extension of time to file isn’t an extension of time to pay.       If the parents were married but filed separate returns, enter the 
                                                                               name and SSN of the parent who had the higher taxable income. If 
CAUTION!                                                                       you don’t know which parent had the higher taxable income, see 
                                                                               Which Parent's Return To Use, earlier.
Parent with different tax year. If the parent and the child don’t 
have the same tax year, complete Form 8615 using the information               If the parents were unmarried, treated as unmarried for federal 
on the parent's return for the tax year that ends in the child's tax year.     income tax purposes, or separated by either a divorce or separate 
                                                                               maintenance decree, enter the name and SSN of the parent with 
Example.      Kimberly must use her mother's tax and taxable                   whom the child resided for the greater part of the calendar year. See 
income to complete her Form 8615 for calendar year 2023 (January               the definition of custodial parent in Pub. 501.
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              Exceptions.  If the custodial parent remarried and filed a joint return 
her mother's return for the tax year ending June 30, 2023, to                  with their new spouse, enter the name and SSN of the person listed 
complete her 2023 Form 8615.                                                   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, 
Parent's return information unavailable.  If a child can’t get the             enter the name and SSN of the person with the higher taxable 
required information about their parent's tax return, the child (or the        income, even if that person isn’t the child’s parent.
child's legal representative) can request the necessary information 
from the IRS.                                                                  If the parents were unmarried but lived together during the year 
How to request.   After the end of the tax year, send a signed,                with the child, enter the name and SSN of the parent who had the 
written request for the information to the Internal Revenue Service            higher taxable income.
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
The request must contain all of the following.                                 If the child had no earned income (defined below), enter the child’s 
• A statement that you are making the request to comply with                   adjusted gross income from Form 1040 or 1040-NR, line 11.
  section 1(g) of the Internal Revenue Code and that you have                  If the child had earned income, use the Child's Unearned Income 
  tried to get the information from the parent.                                Worksheet, later, to figure the amount to enter on line 1. But use the 
• Proof of the child's age (for example, a copy of the child's birth           Alternate Worksheet for Form 8615, Line 1 to figure the amount to 
  certificate).                                                                enter on line 1 if the child:
                                                                               • Files Form 2555 (relating to foreign earned income),
                                                                               • Has a net loss from self-employment, or

                                                                           -2-                                       Instructions for Form 8615

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• Claims a net operating loss deduction. • Capital gains—$300.
• Capital losses—($200).
Earned income. Earned income includes wages, tips, and other
payments received for personal services performed. The dividends were qualified dividends on stock given to her by her
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 Amanda's unearned income is $2,600. This is the total of the
income-producing factors, earned income also includes a dividends ($1,200), taxable interest ($1,300), and capital gains
reasonable allowance for compensation for personal services, but reduced by capital losses ($300 − $200 = $100). Her wages are
not more than 30% of the child’s share of the net profits from that earned (not unearned) income because they are received for work
trade or business (after subtracting the deduction for one-half of actually performed. Her tax-exempt interest isn’t included because it
self-employment tax). However, the 30% limit doesn’t apply if there is nontaxable.
are no net profits from the trade or business. Alternate Worksheet for Form 8615, Line 1
If capital isn’t an income-producing factor and the child’s personal A. Enter the amount from your child’s Form 1040 or
services produced the business income, all of the child’s gross 1040-NR, line 9 . . . . . . . . . . . . . . . . . . . . . . . .
income from the trade or business is considered earned income. In B. Enter the total of any net loss from self-employment,
that case, earned income is generally the total of the amounts any net operating loss deduction, any foreign earned
reported on Form 1040, line 1z; Schedule 1 (Form 1040), lines 3 and income exclusion, and any foreign housing exclusion
6; or Form 1040-NR, line 1z. from your child’s Form 1040 or 1040-NR. Enter this
Earned income also includes any taxable distribution from a total as a positive number (greater than zero) . . . . .
qualified disability trust. A qualified disability trust is any nongrantor C. Add line A and line B and enter the total . . . . . . . .
trust: D. Enter your child’s earned income plus any amount from
1. Described in 42 U.S.C. 1396p(c)(2)(B)(iv) and established your child’s Schedule 1 (Form 1040), line 18 . . . . . .
solely for the benefit of an individual under 65 years of age who Generally, your child’s earned income is the total of the
is disabled, and amounts reported on Form 1040 or 1040-NR, line 1z;
and Schedule 1 (Form 1040), lines 3 and 6 (if Schedule
2. All the beneficiaries of which are determined by the 1 (Form 1040), line 3 or 6 is a loss, use zero)
Commissioner of Social Security to have been disabled for E. Subtract line D from line C. Enter the result here and on
some part of the tax year within the meaning of 42 U.S.C. Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . .
1382c(a)(3).
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 Trust income. If your child is the beneficiary of a trust,
have any disabled beneficiaries. distributions of taxable interest, dividends, capital gains, and other
Nontaxable income. For this purpose, unearned income unearned income from the trust are unearned income to your child.
includes only amounts your child must include in gross income. However, taxable distributions from a qualified disability trust are
Nontaxable unearned income, such as tax-exempt interest and the considered earned income for the purposes of completing Form
nontaxable part of social security and pension payments, isn’t 8615.
included in gross income. Adjustment to income. In figuring the amount to enter on line 1,
Capital loss. Your child’s capital losses are taken into account in your child’s unearned income is reduced by any penalty on the early
figuring their unearned income. Capital losses are first applied withdrawal of savings.
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 Line 2
individual filing a separate return)) is subtracted from your child’s
interest, dividends, and other unearned income. Any difference over If the child doesn't itemize deductions on Schedule A (Form 1040),
$3,000 is carried to the next year. 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
Child’s Unearned Income 1040), line 17 (or Schedule A (Form 1040-NR), line 8), that is
Worksheet—Line 1 directly connected with the production of the unearned income
Keep for Your Records on Form 8615, line 1; or
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
2. Enter the child’s earned income (defined earlier) plus the with the production of unearned income if they are for expenses to
amount of any penalty on early withdrawal of savings from produce or collect taxable income or to manage, conserve, or
the child’s Schedule 1 (Form 1040), line 18, whichever maintain property held for producing income. These expenses
applies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
include custodian fees and service charges, service fees to collect
3. Subtract line 2 from line 1. Enter the result here and on taxable interest and dividends, and certain investment counsel fees.
Form 8615, line 1 . . . . . . . . . . . . . . . . . . . . . . . . .
However, only certain directly connected expenses, such as
interest and deductible amortizable bond premiums, are deductible
Income from property received as a gift. Your child’s in tax years 2018 through 2025.
unearned income includes all income produced by property For tax years 2018 through 2025, miscellaneous itemized
belonging to your child. This is true even if the property was ! deductions are suspended and not deductible.
transferred to your child, regardless of when the property was CAUTION
transferred or purchased or who transferred it.
Example 1. Roger, age 12, has unearned income of $8,000, no
Example. Amanda Black, age 13, received the following other income, no adjustments to income, and itemized deductions of
income. $300 that are directly connected with his unearned income. His
• Dividends—$1,200. adjusted gross income is $8,000, which is entered on Form 1040,
• Wages—$2,100. line 11, and on Form 8615, line 1. Roger enters $2,500 on line 2
• Taxable interest—$1,300. because that is more than the total of $1,250 plus his directly
• Tax-exempt interest—$100. connected itemized deductions of $300 ($1,550).
Instructions for Form 8615 -3-

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Example 2. Eleanor, age 8, has unearned income of $16,000 of all the other children's Forms 8615 being completed. (The term
and an early withdrawal penalty of $100. She has no other income. "other child" means any other child whose Form 8615 uses the tax
She has itemized deductions of $1,300 that are directly connected information of the parent identified on lines A and B of Form 8615.)
with the production of her unearned income. Her adjusted gross Example. Paul and Jane Persimmon have three children,
income, entered on line 1, is $15,900 ($16,000 − $100). The amount Sharon, Jerry, and Mike, who must attach Form 8615 to their tax
on line 2 is $2,550. This is the larger of: returns. The children's net unearned income amounts on line 5 of
1. $1,250 plus the $1,300 of directly connected itemized their Forms 8615 are:
deductions, or • Sharon—$900,
2. $2,500. • Jerry—$700, and
• Mike—$1,100.
Line 3 Line 7 of Sharon's Form 8615 will show $1,800, the total of the
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 Line 7 of Jerry's Form 8615 will show $2,000 ($900 + $1,100).
attach Form 8615 to your child’s tax return. Figure the tax on your Line 7 of Mike's Form 8615 will show $1,600 ($900 + $700).
child’s taxable income in the normal manner.
Line 8
Line 4 Enter on this line the total of lines 5, 6, and 7. You must determine
Enter on line 4 your child’s taxable income from Form 1040, the amount of net capital gain and qualified dividends included on
1040-SR, or 1040-NR, line 15. this line before completing line 9.
Child files Form 2555. If the child files Form 2555 (relating to Net capital gain. Net capital gain is the smaller of the gain, if
foreign earned income), enter the amount from line 3 of the child's any, on Schedule D (Form 1040), line 15, or the gain, if any, on
Foreign Earned Income Tax Worksheet (in the Instructions for Form Schedule D, line 16. If Schedule D isn’t required, it is the amount on
1040), instead of the child's taxable income. Form 1040 or 1040-NR, line 7.
Qualified dividends. Qualified dividends are those dividends
Line 5 reported on line 3a of Form 1040 or 1040-NR.
A child’s net unearned income can’t be more than their taxable Net capital gain and qualified dividends on line 8. If neither the
income. Enter on Form 8615, line 5, the smaller of line 3 or line 4. child, nor the parent, nor any other child has net capital gain, the net
This is the child’s unearned income. 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
If zero or less, don’t complete the rest of the form. However, you identified on lines A and B of Form 8615.)
must still attach Form 8615 to your child’s tax return. Figure the tax
on your child’s taxable income in the normal manner. If neither the child, nor the parent, nor any other child has
qualified dividends, the amount of qualified dividends on line 8 is
Figuring a Tentative Tax at the zero.
If the child, the parent, or any other child has net capital gain,
Parent’s Tax Rate figure the amount of net capital gain included on line 8 by adding
The next step in completing Form 8615 is to figure a tentative tax on together the net capital gain amounts included on lines 5, 6, and 7.
the child's net unearned income at the parent's tax rate. The If the child, the parent, or any other child has qualified dividends,
tentative tax at the parent's tax rate is the difference between the tax figure the amount of qualified dividends included on line 8 by adding
on the parent's taxable income figured with the child's net unearned together the qualified dividend amounts included on lines 5, 6, and
income (plus the net unearned income of any other child whose 7. Use the following discussions to find these amounts.
Form 8615 includes the tax return information of that parent) and the Net capital gain or qualified dividends on line 5. If the child
tax figured without it. has a net capital gain or qualified dividends, use the appropriate
When figuring the tentative tax at the parent's tax rate on Form Line 5 Worksheet in these instructions to find the amount included
8615, don’t refigure any of the exclusions, deductions, or credits on on line 5. These worksheets are needed to adjust the child's net
the parent's return because of the child's net unearned income. For capital gain and qualified dividends by the appropriate allocated
example, don’t refigure the medical expense deduction. amount of the child's deductions.
Figure the tentative tax on Form 8615, lines 6 through 13. 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
Line 6 on line 6. If the parent has qualified dividends, the full amount is the
amount of qualified dividends included on line 6.
Enter on line 6 the amount from the parent's Form 1040, 1040-SR, or Net capital gain or qualified dividends on line 7. The net
1040-NR, line 15, even if your spouse isn't the child's parent. If the capital gain included on line 7 is the total of the amounts of net
parent's taxable income is zero or less, enter zero on line 6. capital gain included on line 5 of the other children's Forms 8615.
Parent files Form 2555. If the parent files Form 2555 to claim the The qualified dividends included on line 7 are the total of the
foreign earned income exclusion, housing exclusion, or housing amounts of qualified dividends included on line 5 of the other
deduction, the Foreign Earned Income Tax Worksheet in the children's Forms 8615. Find these amounts for each other child as
Instructions for Form 1040 is used to figure the parent's tax. Enter explained under Net capital gain or qualified dividends on line 5,
the amount from line 3 of the Foreign Earned Income Tax Worksheet earlier. (Don’t attach the other children's Forms 8615 to this child's
as the parent's taxable income, on line 6 of Form 8615. return.)
Line 7 Note. The amount of any net capital gain or qualified dividends isn’t
If the tax return information of the parent is also used on any other separately reported on line 8. It is needed, however, when figuring
child's Form 8615, enter on line 7 the total of the amounts from line 5 the tax on line 9.

-4- Instructions for Form 8615

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2023 Line 5 Worksheet #1                                                                                                              Keep for Your Records
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            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 $2,500 by line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      6.                    
7. Multiply $2,500 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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2023 Line 5 Worksheet #2                                                                                                                    Keep for Your Records
Use this worksheet only if line 2 of the child's Form 8615 is more than $2,500 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 $1,250 by line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            13.                   
14. Multiply $1,250 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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2023 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.                   

                                                                           also files Form 2555 or 2555-EZ, use Using the Schedule D Tax 
Line 9                                                                     Worksheet for line 9 tax, later, to figure the line 9 tax.
Figure the tax on the amount on line 8 using the Tax Table, the Tax 
Computation Worksheet, the Qualified Dividends and Capital Gain            Using the Qualified Dividends and Capital Gain Tax Worksheet 
Tax Worksheet (in the Instructions for Form 1040, or the Instructions      for line 9 tax. If you use the Qualified Dividends and Capital Gain 
for Form 1040-NR), the Schedule D Tax Worksheet (in the                    Tax Worksheet to figure the line 9 tax, complete that worksheet as 
Schedule D instructions), or Schedule J (Form 1040), as follows.           follows.
• If line 8 doesn’t include any net capital gain or qualified              1. On line 1, enter the amount from Form 8615, line 8.
  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      2. On line 2, enter the amount of qualified dividends included on 
  parent's return, use it to figure this tax.                              Form 8615, line 8. (See the instructions for line 8.)
• If line 8 includes any net capital gain or qualified dividends, use      3. On line 3, enter the amount of the net capital gain included on 
  the Qualified Dividends and Capital Gain Tax Worksheet to                Form 8615, line 8. (See the instructions for line 8.)
  figure this tax. For details, see the instructions for Form 8615, 
  line 9. However, if the child, the parent, or any other child has        4. Complete line 4 following the worksheet instructions.
  28% rate gain or unrecaptured section 1250 gain, use the                 5. If the Foreign Earned Income Tax Worksheet was used to figure 
  Schedule D Tax Worksheet. But if Schedule J is used to figure            the parent's tax, go to step 6. Otherwise, skip steps 6, 7, and 8 
  the tax on the parent's return, use it to figure this tax.               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 
qualified dividends and the child, or any other child filing Form 8615,    this, subtract from line 1 of this worksheet the amount on line 2c 

Instructions for Form 8615                                              -7-

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of the parent's Foreign Earned Income Tax Worksheet. If the b. Subtract (a) from the amount on line 1 of this Schedule D
result is more than zero, that amount is the line 8 capital gain Tax Worksheet.
excess. If the result is zero or less, there is no line 8 capital gain c. Subtract (b) from the amount on line 10 of this Schedule D
excess. Tax Worksheet. If the result is more than zero, that amount
7. If there is no line 8 capital gain excess skip step 8 and go to is the line 8 capital gain excess. If the result is zero or less,
step 9. there is no line 8 capital gain excess.
8. If there is a line 8 capital gain excess, complete a second 11. If there is no line 8 capital gain excess, skip step 12 below and
Qualified Dividends and Capital Gain Tax Worksheet, in its go to step 13.
entirety using steps 1 through 7, and with the following 12. If there is a line 8 capital gain excess, complete a second
additional modifications. Schedule D Tax Worksheet as instructed above and in step 13
a. Reduce the amount you would otherwise enter on line 3 but in its entirety and with the following additional modifications.
(but not below zero) by the line 8 capital gain excess. (These modifications are to be made only for purposes of filling
out this additional Schedule D Tax Worksheet.)
b. Reduce the amount you would otherwise enter on line 2
(but not below zero) by any of the line 8 capital gain excess a. Reduce the amount you would otherwise enter on line 9
not used in (a). (but not below zero) by the line 8 capital gain excess.
9. Complete lines 5 through 25 following the worksheet b. Reduce the amount you would otherwise enter on line 6
instructions. Use the parent's filing status to complete lines 6, (but not below zero) by any of the line 8 capital gain excess
13, 22, and 24. 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
Worksheet—28% Rate Gain (Line 9 Tax), shown later, (but
Using the Schedule D Tax Worksheet for line 9 tax. Use the not below zero) by the line 8 capital gain excess, and
Schedule D Tax Worksheet (in the Schedule D instructions) to figure refigure the amount on line 11 of this Schedule D Tax
the tax on line 9, if the child, the parent, or any other child has Worksheet.
unrecaptured section 1250 gain or 28% rate gain. If you must use
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
amount on line 11 of this Schedule D Tax Worksheet.
1. On line 1, enter the amount from Form 8615, line 8. 13. Complete lines 12 through 47 following the worksheet
2. On line 2, enter the qualified dividends included on Form 8615, instructions. On line 35, enter the smaller of (a) line 9 of this
line 8. (See the earlier discussion for Form 8615, line 8.) 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
3. On line 3, enter the total of the amounts, if any, on line 4g of all other child. Use the parent's filing status to complete lines 15,
Forms 4952 filed by the child, the parent, or any other child. 44, and 46.
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 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.
Figuring 28% rate gain (line 11). If the child, the parent, or any
5. On lines 5 and 6, follow the worksheet instructions. 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. Worksheet 1 for Line 11 of the Schedule D Tax
8. On line 11, enter zero if neither the child, nor the parent, nor any Worksheet—28% Rate Gain (Line 9 Tax)
other child has unrecaptured section 1250 gain (Schedule D, 1. Enter the amount, if any, from your child’s Schedule D (Form
line 19) or 28% rate gain (Schedule D, line 18). 1040), line 18 . . . . . . . . . . . . . . . . . . . . . . .
Otherwise, enter the amount of unrecaptured section 1250 If line 1 is zero or blank, skip lines 2 through 4, enter -0-
gain and 28% rate gain included in the net capital gain on Form on line 5, and go to line 6.
8615, line 8. Figure these amounts as explained later under 2. Enter the amount, if any, from the last line of your child’s
Figuring unrecaptured section 1250 gain (line 11) and Figuring completed Line 5 Worksheet. (See the line 8 instructions for
which Line 5 Worksheet to use.). . . . . . . . . . . . . .
28% rate gain (line 11). 3. Enter the amount from line 2 of your child’s completed Line 5
9. If the Foreign Earned Income Tax Worksheet was used to figure Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .
the parent's tax or the tax of any child, go to step 10 below. 4. Divide line 2 by line 3. Enter the result as a decimal . . .
Otherwise, skip steps 10, 11, and 12 below, and go to step 13. 5. Multiply line 1 by line 4 . . . . . . . . . . . . . . . . . .
10. Determine whether there is a line 8 capital gain excess as 6. If no other child has 28% rate gain, enter -0-. Otherwise,
follows. 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
a. Add the amounts on line 2c of all Foreign Earned Income those other children . . . . . . . . . . . . . . . . . . . .
Tax Worksheets completed by the parent or any child for 7. Enter the amount, if any, from line 18 of the parent's
whom Form 8615 is filed. (But, for each child, don’t add Schedule D (Form 1040) . . . . . . . . . . . . . . . . .
more than the excess, if any, of the amount on line 5 of the 8. Add lines 5, 6, and 7. Also include this amount on the
child's Form 8615 over the child’s taxable income on Form Schedule D Tax Worksheet, line 11 . . . . . . . . . . . .
1040 or 1040-NR, line 15.)

-8- Instructions for Form 8615

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Figuring unrecaptured section 1250 gain (line 11). If the
child, the parent, or any other child has unrecaptured section 1250 Line 10
gain, figure the amount of unrecaptured section 1250 gain included Enter on line 10 the amount from Form 1040, 1040-SR, or 1040-NR,
in the net capital gain on Form 8615, line 8, using the following line 16. Don’t include the tax, if any, from Form 4972 or Form 8814 or
worksheet. any tax from recapture of an education credit.
Parent files Form 2555. If the Foreign Earned Income Tax
Worksheet 2 for Line 11 of the Schedule D Worksheet (in the Instructions for Form 1040) was used to figure the
Tax Worksheet—Unrecaptured parent's tax, enter the amount from line 4 of that worksheet, instead
Section 1250 Gain (Line 9 Tax) of the parent's tax from Form 1040, line 16.
1. Enter the amount, if any, from your child’s Schedule D,
line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . .
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
2. Enter the amount, if any, from the last line of your child’s the tentative tax.
completed Line 5 Worksheet. (See the line 8 instructions for If line 7 is blank, skip lines 12a and 12b and enter the amount
which Line 5 Worksheet to use.). . . . . . . . . . . . . .
from line 11 on line 13. Also skip the discussion for lines 12a and
3. Enter the amount from line 2 of your child’s completed Line 5 12b that follows.
Worksheet . . . . . . . . . . . . . . . . . . . . . . . . .
4. Divide line 2 by line 3. Enter the result as a decimal . . . Lines 12a and 12b
5. Multiply line 1 by line 4. . . . . . . . . . . . . . . . . . . If an amount is entered on line 7, divide the tentative tax shown on
6. If no other child has unrecaptured section 1250 gain, line 11 among the children according to each child's share of the
enter -0-. Otherwise, repeat lines 1 through 5 for each other total net unearned income. This is done on lines 12a, 12b, and 13.
child who has unrecaptured section 1250 gain and enter the Add the amount on line 7 to the amount on line 5 and enter the total
total of the line 5 amounts for those children . . . . . . .
on line 12a. Divide the amount on line 5 by the amount on line 12a
7. Enter the amount, if any, from line 19 of the parent's and enter the result, as a decimal, on line 12b.
Schedule D (Form 1040) . . . . . . . . . . . . . . . . .
8. Add lines 5, 6, and 7. Also include this amount on the Example. In the earlier example under Line 7, Sharon's Form
Schedule D Tax Worksheet, line 11 . . . . . . . . . . . . 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.
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 $900
Schedule J. Use Schedule J to figure the line 9 tax on Form 8615 if $2,700 = 0.333
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.) Line 13
Complete this worksheet Schedule J as follows. If an amount is entered on line 7, multiply line 11 by the decimal on
1. On line 1, enter the amount from Form 8615, line 8. line 12b and enter the result on line 13. This is the child’s share of
the tentative tax.
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
3. Complete line 3 following the Schedule J instructions. The final step in figuring the child’s tax is to determine the larger of:
4. Complete line 4. If Form 8615, line 8, includes any net capital 1. The total of:
gain, use the Qualified Dividends and Capital Gain Tax a. The child’s share of the tentative tax based on the parent's
Worksheet to figure the tax amount on this line. tax rate, plus
For details on how to use the worksheet, see Using the
Qualified Dividends and Capital Gain Tax Worksheet for line 9 b. The tax on the child’s taxable income in excess of net
tax, except use the amount from line 3 of this worksheet unearned income, figured at the child’s tax rate; or
Schedule J (Form 1040) instead of the amount on Form 8615, 2. The tax on the child’s taxable income, figured at the child’s tax
line 8. rate.
However, if the child, the parent, or any other child has 28%
rate gain or unrecaptured section 1250 gain, use the This is the child’s tax. It is figured on Form 8615, lines 14 through
Schedule D Tax Worksheet. Follow the earlier instructions 18.
under Using the Schedule D Tax Worksheet for line 9 tax,
except use the amount on line 3 of this worksheet Schedule J Line 14
(instead of the amount on Form 8615, line 8) in step 1, above. If lines 4 and 5 of Form 8615 are the same, the child’s taxable
5. On lines 5 through 16, enter the amounts from the parent's income isn’t more than the child’s net unearned income. Enter zero
Schedule J, lines 5 through 16. 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.
6. Complete lines 17 and 18 following the Schedule J (Form 1040)
instructions. 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
7. On lines 19 through 22, enter the amounts from the parent's determine the amount of net capital gain and qualified dividends, if
Schedule J, lines 19 through 22. any, included on line 14.
8. Complete line 23 following the Schedule J instructions. Net capital gain and qualified dividends on line 14. If the child
doesn’t have any net capital gain or qualified dividends, the amount
Enter the amount from line 23 of this worksheet Schedule J on of the net capital gain and qualified dividends included on line 14 is
Form 8615, line 9, and check the box on that line. zero.
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
Instructions for Form 8615 -9-

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Line 5 Worksheet minus the amount from the last line of that Otherwise, see Worksheet 1 for Line 11 of the Schedule D
worksheet. (See the earlier discussion of line 8.) Tax Worksheet—28% Rate Gain (Line 9 Tax) and Worksheet 2
If the child has qualified dividends, the amount of qualified for Line 11 of the Schedule D Tax Worksheet—Unrecaptured
dividends included on line 14 is the amount from line 1 of the child’s Section 1250 Gain (Line 9 Tax) under Using the Schedule D
completed Line 5 Worksheet minus the amount from the next to the Tax Worksheet for line 9 tax, earlier.
last line of that worksheet. (See the earlier discussion of line 8.) For each worksheet you complete, subtract line 5 of that
worksheet from line 1 of that worksheet, and include the result
Line 15 on line 11 of this worksheet.
Figure the tax using the Tax Table, Tax Computation Worksheet, 10. If the child isn’t filing Form 2555, skip steps 11, 12, and 13
Qualified Dividends and Capital Gain Tax Worksheet, Schedule D below, and go to step 14. If the child is filing Form 2555, go to
Tax Worksheet, or Schedule J, whichever applies. step 11.
If line 14 includes any net capital gain or qualified dividends, 11. Determine whether there is a line 14 capital gain excess as
TIP use the Qualified Dividends and Capital Gain Tax Worksheet follows.
to figure this tax. However, if the child has to file Schedule D a. Subtract from line 2c of your Foreign Earned Income Tax
and line 18 or line 19 of the child's Schedule D is more than zero, Worksheet the excess, if any, of the amount on line 5 of the
use the Schedule D Tax Worksheet to figure this tax instead. See child's Form 8615 over the child's taxable income on Form
Using the Schedule D Tax Worksheet for line 15 tax, later, for 1040 or 1040-NR, line 15.
instructions on how to figure the line 15 tax.
b. Subtract (a) from the amount on line 14 of Form 8615.
Note. Before using the Qualified Dividends and Capital Gain Tax c. Subtract (b) from the amount on line 10 of this Schedule D
Worksheet to figure the line 15 tax, you will need to know the amount Tax Worksheet. If the result is more than zero, that amount
of net capital gain and qualified dividends, if any, included on line 14. is the line 14 capital gain excess. If the result is zero or less,
See Net capital gain and qualified dividends on line 14, earlier. there is no line 14 capital gain excess.
Using the Qualified Dividends and Capital Gain Tax Worksheet 12. If there is no line 14 capital gain excess, skip step 13 below and
for line 15 tax. If you use the Qualified Dividends and Capital Gain go to step 14.
Tax Worksheet to figure the line 15 tax, complete that worksheet as 13. If there is a line 14 capital gain excess, complete a second
follows. Schedule D Tax Worksheet as instructed above and in step 14
1. On line 1, enter the amount from Form 8615, line 14. below but in its entirety and with the following additional
modifications. (These modifications are to be made only for
2. On line 2, enter the amount of the qualified dividends included purposes of filling out this Schedule D Tax Worksheet.)
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 b. Reduce the amount you would otherwise enter on line 6
dividends on line 14, earlier.) (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
5. Complete lines 5 through 25 following the worksheet would otherwise enter on line 11, as figured in step 9, (but
instructions. Use the child's filing status to complete lines 6, 13, not below zero) by the line 14 capital gain excess.
22, and 24 of the worksheet.
d. If the child has unrecaptured section 1250 gain, reduce the
Enter the amount from line 25 on line 15 of Form 8615 and check amount you would otherwise enter on line 11, as figured in
the box on that line. Don’t attach this worksheet to the child's return. step 9, (but not below zero) by the line 14 capital gain
Child files Form 2555. If line 14 includes any net capital gain or excess not used in (c) above.
qualified dividends and the child files Form 2555, see Using the 14. Complete lines 12 through 47 following the worksheet
Schedule D Tax Worksheet for line 15 tax next for instructions on instructions. Use the child's filing status to complete lines 15,
how to figure the line 15 tax. 44, and 46.
Using the Schedule D Tax Worksheet for line 15 tax. Use the Enter the amount from line 47 of this Schedule D Tax Worksheet
Schedule D Tax Worksheet (in the Schedule D instructions) to figure on Form 8615, line 15, and check the box on that line. Don’t attach
the line 15 tax if the child has unrecaptured section 1250 gain or this worksheet to your return.
28% rate gain. Don’t attach this Schedule D Tax Worksheet to the
child’s return. Using Schedule J (Form 1040) for line 15 tax. If Schedule J
Complete this Schedule D Tax Worksheet as follows. 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
1. On line 1, enter the amount from Form 8615, line 14. Form 8615, line 14. Complete lines 2a through 23 following the
2. On line 2, enter the qualified dividends included on Form 8615, Schedule J instructions. Use the child’s filing status to complete lines
line 14. (See the earlier discussion of line 14.) 4, 8, 12, and 16.
Enter the amount from line 23 of this worksheet Schedule J on
3. Leave lines 3 through 5 blank. Form 8615, line 15, and check the box on that line. Don’t attach this
4. Enter the amount from line 2 on line 6. worksheet to the child’s return.

5. On line 7, enter the net capital gain included on Form 8615, Line 16
line 14. (See the earlier discussion of line 14.)
Add lines 13 and 15 and enter the total on line 16. This is your child’s
6. Skip line 8. tax figured at the parent's rate on net unearned income and the
7. Enter the amount from line 7 on line 9. child’s tax rate on other income.

8. Complete line 10, following the worksheet instructions. Line 17
9. On line 11, enter zero if the child has no 28% rate gain Figure the tax on the amount on line 4. Use the Tax Table, the Tax
(Schedule D, line 18) or unrecaptured section 1250 gain Computation Worksheet, the Qualified Dividends and Capital Gain
(Schedule D, line 19). Tax Worksheet, the Schedule D Tax Worksheet, or the child’s actual

-10- Instructions for Form 8615

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Schedule J (Form 1040), whichever applies. Enter the tax amount on instructions in the footnote to the Foreign Earned Income Tax
line 17. If the amount was figured using the Qualified Dividends and Worksheet (in the Instructions for Form 1040).
Capital Gain Tax Worksheet, the Schedule D Tax Worksheet, or
Schedule J, check the box on that line. Line 18
If line 4 includes any qualified dividends or net capital gain, use Enter on line 18 the larger of line 16 or line 17. Also enter this
the Qualified Dividends and Capital Gain Tax Worksheet to figure the amount on the child’s Form 1040 or 1040-NR, line 16. This is the
tax unless the Schedule D Tax Worksheet has to be used instead. child’s tax.
If any farming or fishing income (including certain amounts Child files Form 2555. If your child files Form 2555, don't enter the
received in connection with the Exxon Valdez litigation) is included amount from Form 8615, line 18, on the child's Form 1040 or
on line 4, the tax may be less if you use Schedule J. 1040-NR, line 16. Instead, enter the amount from Form 8615,
Child files Form 2555. If your child files Form 2555 and has a net line 18, on line 4 of the child's Foreign Earned Income Tax
capital gain or qualified dividends, figure the tax using the Qualified Worksheet. Then complete the rest of the Foreign Earned Income
Dividends and Capital Gain Tax Worksheet or the Schedule D Tax Tax Worksheet (in the Instructions for Form 1040) to figure the child’s
Worksheet, whichever applies. To fill out that worksheet, follow the tax.

Instructions for Form 8615 -11-

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