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Net capital gain or qualified

6. If the Foreign Earned Income Tax

dividends on line 7. The net capital

Worksheet was used to figure the

Line 5 Worksheet #3

gain included on line 7 is the total of the

parent’s tax, go to step 7 below.

Keep for Your Records

amounts of net capital gain included on

Otherwise, skip steps 7, 8, and 9 below,

line 5 of the other children’s Forms 8615.

and go to step 10.

The qualified dividends included on line 7

7. Determine whether there is a line 8

Use this worksheet only if the child’s Form

is the total of the amounts of qualified

capital gain excess. To do this, subtract

8615, line 5, is less than line 3.

dividends included on line 5 of the other

from line 1 of the worksheet the amount

children’s Forms 8615. Find these

on line 2 of the parent’s Foreign Earned

1. Enter the child’s qualified

amounts for each other child as explained

Income Tax Worksheet. Subtract the

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

under Net capital gain or qualified

result from line 6 of this Qualified

dividends on line 5 on page 2. (Do not

Dividends and Capital Gain Tax

2. Enter the child’s net capital gain

attach the other children’s Forms 8615 to

Worksheet (line 4 of the worksheet in the

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

this child’s return.)

Form 1040A or Form 1040NR

4. Divide line 1 by line 3. Enter the

instructions). If the result is more than

result as a decimal (rounded to at

Line 9

zero, that amount is the line 8 capital gain

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

excess. If the result is zero or less, there

Figure the tax using the Tax Table, Tax

5. If the child itemized deductions,

is no line 8 capital gain excess.

Computation Worksheet, Qualified

enter the child’s itemized

8. If there is no line 8 capital gain

Dividends and Capital Gain Tax

deductions directly connected

excess, skip step 9 below and go to step

Worksheet, Schedule D Tax Worksheet,

with the production of the income

10.

or Schedule J, whichever applies. If line 8

on line 3 . . . . . . . . . . . . . . . .

9. If there is a line 8 capital gain

includes any net capital gain or qualified

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

excess, complete a second Qualified

dividends, use the Qualified Dividends

Dividends and Capital Gain Tax

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

and Capital Gain Tax Worksheet in the

Worksheet as instructed above and in

Form 1040, 1040A, or 1040NR

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

step 10 below but in its entirety and with

instructions to figure the tax, unless you

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

the following additional modifications.

have to use the Schedule D Tax

10. If the child can claim his or her

Worksheet or Schedule J (see below).

a. Reduce the amount you would

own exemption, enter $3,650*.

otherwise enter on line 3 (but not below

Schedule D Tax Worksheet. If the

Otherwise, enter -0- . . . . . . . . .

zero) by the line 8 capital gain excess.

child, parent, or any other child has to file

b. Reduce the amount you would

11. If the child itemized deductions,

Schedule D and line 18 or 19 of any

otherwise enter on line 2 (but not below

enter the child’s itemized

Schedule D is more than zero, use the

zero) by any of the line 8 capital gain

deductions not directly connected

Schedule D Tax Worksheet in the

with the production of the income

excess not used in (a) above.

Instructions for Schedule D to figure the

on line 3. Otherwise, enter the

10. Complete lines 7 through 18 (lines

tax. See Pub. 929 for details on how to

child’s standard deduction . . . .

5 through 16 of the worksheet in the Form

figure the line 9 tax using the Schedule D

1040A or Form 1040NR instructions)

12. Add lines 10 and 11 . . . . . . . . .

Tax Worksheet.

following the worksheet instructions. Use

13. Enter the child’s adjusted gross

Schedule J. If any farming or fishing

the parent’s filing status to complete lines

income (Form 1040, line 38;

income (including certain amounts

8, 15, and 17 (lines 6, 13, and 15 of the

Form 1040A, line 22; or Form

received in connection with the Exxon

worksheet in the Form 1040A or Form

1040NR, line 36) . . . . . . . . . . .

Valdez litigation) is included on line 8, the

1040NR instructions).

tax may be less if you use Schedule J. If

14. Divide line 3 by line 13. Enter the

result as a decimal (rounded to at

Schedule J was used to figure the tax on

Enter the amount from line 18 of the

least three places). Do not enter

the parent’s return, see Pub. 929 for

Qualified Dividends and Capital Gain Tax

more than 1.000 . . . . . . . . . . .

details on how to figure the tax.

Worksheet (or line 16 of the worksheet in

15. Multiply line 12 by line 14 . . . . .

Child files Form 2555 or 2555-EZ. If

the Form 1040A or Form 1040NR

line 8 includes any net capital gain or

instructions) on Form 8615, line 9, and

16. Multiply line 15 by line 4 . . . . . .

qualified dividends and the child or any

check the box on that line. Do not attach

17. Subtract line 16 from line 15 . . .

other child filing Form 8615 also files

this worksheet to the child’s return.

18. Qualified dividends on Form

Form 2555 or 2555-EZ, see Pub. 929 for

8615, line 5. Subtract line 16

instructions on how to figure the line 9

Line 10

from line 9. Enter the result here

tax.

If the parent filed a joint return, enter the

(but do not enter less than zero or

Using the Qualified Dividends and

tax shown on that return even if the

more than the amount on Form

Capital Gain Tax Worksheet for line 9

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

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

tax. If you use the Qualified Dividends

19. Net capital gain on Form 8615,

If the Foreign Earned Income Tax

and Capital Gain Tax Worksheet to figure

line 5. Subtract line 17 from line 8

Worksheet (in the Form 1040 instructions)

the line 9 tax, complete that worksheet as

(but do not enter less than zero or

was used to figure the parent’s tax, enter

follows.

more than the excess of Form

the amount from line 4 of that worksheet,

1. On line 1, enter the amount from

8615, line 5, over line 18 of this

instead of the parent’s tax from Form

Form 8615, line 8.

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

1040, line 44.

2. On line 2, enter the amount of

qualified dividends included on Form

*If you enter more than $125,100 on line 13, see the

Line 15

Deduction for Exemptions Worksheet in the Form

8615, line 8. (See the instructions for line

1040, Form 1040A, or Form 1040NR instructions

8.)

Figure the tax using the Tax Table, Tax

for the amount to enter on line 10.

3. On line 3, enter the amount of the

Computation Worksheet, Qualified

net capital gain included on Form 8615,

Dividends and Capital Gain Tax

Net capital gain or qualified

line 8. (See the instructions for line 8.)

Worksheet, Schedule D Tax Worksheet,

dividends on line 6. If the parent has a

4. Complete line 4 following the

or Schedule J, whichever applies. If line

net capital gain, its full amount is the net

worksheet instructions.

14 includes any net capital gain or

capital gain included on line 6. If the

5. If you are completing the worksheet

qualified dividends (see page 4), use the

parent has qualified dividends, the full

in the Form 1040 instructions, enter on

Qualified Dividends and Capital Gain Tax

amount is the amount of qualified

line 5 the total of the amounts, if any, on

Worksheet to figure this tax. However, if

dividends included on line 6.

line 4g of all Forms 4952 filed by the

the child has to file Schedule D and line

child, parent, or any other child. Then

18 or line 19 of the child’s Schedule D is

complete line 6 following the worksheet

more than zero, use the Schedule D Tax

instructions.

Worksheet to figure this tax instead. See

-3-

Instructions For Form 8615 - Tax For Certain Children Who Have Investment Income Of More Than 1,900 - Internal Revenue Service - 2009 Page 3

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