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2006

Department of the Treasury

Internal Revenue Service

Instructions for Form 8615

Tax for Children Under Age 18 With Investment Income of More Than $1,700

The parent may be able to elect

Line Instructions

General Instructions

TIP

to report the child’s interest,

ordinary dividends, and capital

Lines A and B

gain distributions on the parent’s return.

What’s New

If the parent makes this election, the

•

If the child’s parents were married to

This form generally must be filed for

child will not have to file a return or

each other and filed a joint return, enter

a child under age 18 (previously under

Form 8615. However, the federal

the name and social security number

age 14) at the end of the year who had

income tax on the child’s income,

(SSN) of the parent who is listed first on

investment income of more than $1,700

including qualified dividends and capital

the joint return.

(previously $1,600).

gain distributions, may be higher if this

•

For purposes of completing this form,

If the parents were married but filed

election is made. For more details, see

a taxable distribution from a qualified

separate returns, enter the name and

Form 8814, Parents’ Election To Report

disability trust is considered earned

SSN of the parent who had the higher

Child’s Interest and Dividends.

income, not investment income. See

taxable income. If you do not know

page 2.

which parent had the higher taxable

•

Additional Information

New rules apply if the child or the

income, see Pub. 929.

parent files Form 2555 or 2555-EZ to

For more details, see Pub. 929, Tax

If the parents were unmarried,

claim the foreign earned income

Rules for Children and Dependents.

treated as unmarried for federal income

exclusion or housing exclusion. See the

tax purposes, or separated by either a

instructions for lines 4, 6, 10, and 18.

divorce or separate maintenance

Incomplete Information

decree, enter the name and SSN of the

Purpose of Form

for Parent or Other

parent with whom the child lived for

For children under age 18, investment

most of the year (the custodial parent).

Children

income over $1,700 is taxed at the

Exceptions. If the custodial parent

parent’s rate if the parent’s rate is

If the parent’s taxable income or filing

remarried and filed a joint return with

higher than the child’s. If the child’s

status or the net investment income of

his or her new spouse, enter the name

investment income is more than

the parent’s other children is not known

and SSN of the person listed first on

$1,700, use Form 8615 to figure the

by the due date of the child’s return,

the joint return, even if that person is

child’s tax.

reasonable estimates can be used.

not the child’s parent. If the custodial

Enter “Estimated” next to the

parent and his or her new spouse filed

appropriate line(s) of Form 8615. When

Investment Income

separate returns, enter the name and

the correct information is available, file

SSN of the person with the higher

For Form 8615, “investment income”

Form 1040X, Amended U.S. Individual

taxable income, even if that person is

includes all taxable income other than

Income Tax Return.

not the child’s parent.

earned income as defined on page 2.

Investment income includes taxable

Instead of using estimates, the child

If the parents were unmarried but

interest, ordinary dividends, capital

may be able to get an automatic

lived together during the year with the

gains (including capital gain

6-month extension of time to file. For

child, enter the name and SSN of the

distributions), rents, royalties, etc. It

details, see Form 4868, Application for

parent who had the higher taxable

also includes taxable social security

Automatic Extension of Time To File

income.

benefits, pension and annuity income,

U.S. Individual Income Tax Return.

and income (other than earned income)

Line 1

received as the beneficiary of a trust.

Amended Return

If the child had no earned income

(defined on page 2), enter the child’s

If after the child’s return is filed, the

Who Must File

adjusted gross income from Form 1040,

parent’s taxable income changes or the

line 38; Form 1040A, line 22; or Form

Form 8615 must be filed for any child

net investment income of any of the

1040NR, line 36.

who meets the following conditions.

parent’s other children changes, the

•

The child was under age 18 at the

child’s tax must be refigured using the

If the child had earned income, use

end of 2006. A child born on January 1,

adjusted amounts. If the child’s tax

the worksheet on page 2 to figure the

1989, is considered to be age 18 at the

changes, file Form 1040X to correct the

amount to enter on line 1. But use Pub.

end of 2006.

child’s tax.

929 instead of the worksheet to figure

•

At least one of the child’s parents

the amount to enter on line 1 if the

was alive at the end of 2006.

child:

•

Alternative Minimum Tax

•

The child had more than $1,700 of

Files Form 2555 or 2555-EZ (relating

investment income.

A child whose tax is figured on Form

to foreign earned income),

•

The child is required to file a tax

8615 may owe the alternative minimum

Has a net loss from self-employment,

return.

tax. For details, see Form 6251,

•

The child does not file a joint return

Alternative Minimum Tax — Individuals,

Claims a net operating loss

for 2006.

and its instructions.

deduction.

Cat. No. 28914R

Instructions For Form 8615 - Tax For Children Under Age 18 With Investment Income Of More Than 1,700 - Internal Revenue Service - 2006

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