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Has a net loss from self-employment,

the amount from line 3 of that worksheet,

5. Divide line 2 by line 3. Enter the

instead of the parent’s taxable income.

result as a decimal (rounded to

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Claims a net operating loss deduction.

at least three places). Do not

Line 8

enter more than 1.000 . . . . . .

Earned income. Earned income

includes wages, tips, and other payments

Enter on this line the total of lines 5, 6,

6. Multiply $1,900 by line 4 . . . . .

received for personal services performed.

and 7. You must determine the amount of

7. Multiply $1,900 by line 5 . . . . .

Generally, it is the total of the amounts

net capital gain and qualified dividends

8. Qualified dividends on Form

reported on Form 1040, lines 7, 12, and

included on this line before completing

8615, line 5. Subtract line 6 from

18; Form 1040A, line 7; or Form 1040NR,

line 9.

line 1 (but do not enter less than

lines 8, 13, and 19.

Net capital gain. Net capital gain is

zero or more than the amount on

Earned income also includes any

the smaller of the gain, if any, on

Form 8615, line 5) . . . . . . . . .

taxable distribution from a qualified

Schedule D, line 15, or the gain, if any, on

9. Net capital gain on Form 8615,

disability trust. A qualified disability trust is

Schedule D, line 16. If Schedule D is not

line 5. Subtract line 7 from line 2

any nongrantor trust:

required, it is the amount on line 13 of

(but do not enter less than zero

Form 1040, line 10 of Form 1040A, or line

1. Described in 42 U.S.C.

or more than the excess of Form

14 of Form 1040NR.

1396p(c)(2)(B)(iv) and established solely

8615, line 5, over line 8 of this

for the benefit of an individual under 65

Qualified dividends. Qualified

worksheet) . . . . . . . . . . . . . .

years of age who is disabled, and

dividends are those dividends reported on

2. All the beneficiaries of which are

line 9b of Form 1040 or Form 1040A or

determined by the Commissioner of

line 10b of Form 1040NR.

Line 5 Worksheet #2

Social Security to have been disabled for

Net capital gain and qualified

Keep for Your Records

some part of the tax year within the

dividends on line 8. If neither the child,

meaning of 42 U.S.C. 1382c(a)(3).

nor the parent, nor any other child has net

capital gain, the net capital gain on line 8

A trust will not fail to meet (2) above

Use this worksheet only if line 2 of the child’s

is zero. (The term “other child” means any

just because the trust’s corpus may revert

Form 8615 is more than $1,900 and lines 3

other child whose Form 8615 uses the tax

to a person who is not disabled after the

and 5 are the same amount.

return information of the parent identified

trust ceases to have any disabled

on Lines A and B of Form 8615.)

beneficiaries.

1. Enter the child’s qualified

If neither the child, nor the parent, nor

dividends . . . . . . . . . . . . . . .

any other child has qualified dividends,

Child’s Investment Income

2. Enter the child’s net capital gain

the amount of qualified dividends on line

Worksheet — Line 1

8 is zero.

Keep for Your Records

3. Add lines 1 and 2 . . . . . . . . .

If the child, parent, or any other child

4. Divide line 1 by line 3. Enter the

1. Enter the amount from the child’s

has net capital gain, figure the amount of

result as a decimal (rounded to

Form 1040, line 22; Form 1040A,

net capital gain included on line 8 by

at least three places) . . . . . . .

line 15; or Form 1040NR, line 23,

adding together the net capital gain

whichever applies . . . . . . . . . .

5. Enter the child’s itemized

amounts included on lines 5, 6, and 7. If

2. Enter the child’s earned income

deductions directly connected

the child, parent, or any other child has

(defined above) plus the amount

with the production of the child’s

qualified dividends, figure the amount of

of any penalty on early

qualified dividends or net capital

qualified dividends included on line 8 by

withdrawal of savings from the

gain . . . . . . . . . . . . . . . . . .

adding together the qualified dividend

child’s Form 1040, line 30, or

amounts included on lines 5, 6, and 7.

Form 1040NR, line 29, whichever

6. Multiply line 4 by line 5 . . . . . .

Use the following discussions to find

applies . . . . . . . . . . . . . . . . .

7. Subtract line 6 from line 5 . . . .

these amounts.

3. Subtract line 2 from line 1. Enter

the result here and on Form

Net capital gain or qualified

8. Subtract line 7 from line 2 . . . .

8615, line 1 . . . . . . . . . . . . . .

dividends on line 5. If the child has a

9. Subtract line 6 from line 1 . . . .

net capital gain or qualified dividends, use

10. Enter the amount from the

the appropriate Line 5 Worksheet on this

Line 2

child’s Form 8615, line 1 . . . . .

page or page 3 to find the amount of each

included on line 5. These worksheets are

If the child itemized deductions, enter the

11. Divide line 1 by line 10. Enter

needed to adjust the child’s net capital

larger of:

the result as a decimal (rounded

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gain and qualified dividends by the

$1,900, or

to at least three places). Do not

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appropriate allocated amount of the

$950 plus the portion of the amount on

enter more than 1.000 . . . . . .

child’s deductions.

Schedule A (Form 1040), line 29 (or Form

12. Divide line 2 by line 10. Enter

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

the result as a decimal (rounded

directly connected with the production of

to at least three places). Do not

the investment income on Form 8615,

Line 5 Worksheet #1

enter more than 1.000 minus

Keep for Your Records

line 1.

the amount on line 11 . . . . . .

Line 4

13. Multiply $950 by line 11 . . . . .

If the child files Form 2555 or 2555-EZ

14. Multiply $950 by line 12 . . . . .

Use this worksheet only if line 2 of the child’s

(relating to foreign earned income), enter

Form 8615 is $1,900 and lines 3 and 5 are the

15. Qualified dividends on Form

the amount from line 3 of the child’s

same amount.

8615, line 5. Subtract line 13

Foreign Earned Income Tax Worksheet

from line 9 (but do not enter less

(in the Form 1040 instructions), instead of

1. Enter the child’s qualified

than zero or more than the

the child’s taxable income.

dividends . . . . . . . . . . . . . . .

amount on Form 8615, line 5)

Line 6

2. Enter the child’s net capital gain

16. Net capital gain on Form

8615, line 5. Subtract line 14

If the parent filed a joint return, enter the

3. Enter the amount from the

from line 8 (but do not enter less

taxable income shown on that return even

child’s Form 8615, line 1 . . . . .

than zero or more than the

if the parent’s spouse is not the child’s

excess of Form 8615, line 5,

4. Divide line 1 by line 3. Enter the

parent.

over line 15 of this worksheet)

result as a decimal (rounded to

If the Foreign Earned Income Tax

at least three places). Do not

Worksheet (in the Form 1040 instructions)

enter more than 1.000 . . . . . .

was used to figure the parent’s tax, enter

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Instructions For Form 8615 - Tax For Certain Children Who Have Investment Income Of More Than 1,900 - Internal Revenue Service - 2009 Page 2

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