Publication 929 - Tax Rules For Children And Dependents

7 of Form 8615. If the child, parent, or any other

6. On line 7, enter the net capital gain in-

Worksheet 2 for Line 11 of the Schedule D

child has qualified dividends, figure the amount

cluded on Form 8615, line 8. (See the ear-

Tax Worksheet – Unrecaptured

of qualified dividends included on line 8 by ad-

lier discussion for line 8.)

Section 1250 Gain

ding together the qualified dividend amounts

(Line 9 Tax)

7. On lines 8 through 10, follow the work-

included on lines 5, 6, and 7. Use the instruc-

sheet instructions.

1. Enter the amount, if any, from the

tions for Form 8615, line 8, including the appro-

child’s Schedule D, line 19. . . . .

8. On line 11, enter zero if neither the child,

priate Line 5 Worksheet, to find these amounts.

parent, nor any other child has unrecap-

If line 1 is zero or blank, skip

tured section 1250 gain (line 19 of Sched-

lines 2 through 4, enter -0-

Line 9 (Tax on Parent’s Taxable

on line 5, and go to line 6.

ule D) or 28% rate gain (line 18 of

Income Plus Children’s Net

Schedule D). Otherwise, enter the amount

2. Enter the amount, if any, from

Investment Income)

of unrecaptured section 1250 gain and

the last line of the child’s

28% rate gain included in the net capital

completed Line 5 Worksheet in

Figure the tax on the amount on line 8 using the

gain on line 8 of Form 8615. Figure these

the instructions for Form 8615,

Tax Table, the Tax Computation Worksheet, the

amounts as explained later under Figuring

line 8 . . . . . . . . . . . . . . . . . . .

Qualified Dividends and Capital Gain Tax Work-

unrecaptured section 1250 gain (line 11)

3. Enter the amount from line 2 of

sheet (in the Form 1040, 1040A, or 1040NR

and Figuring 28% rate gain (line 11).

the child’s completed Line 5

instructions), the Schedule D Tax Worksheet (in

Worksheet . . . . . . . . . . . . . . .

9. Complete lines 12 through 37, following

the Schedule D instructions) or Schedule J

the worksheet instructions. Use the par-

(Form 1040), as follows.

4. Divide line 2 by line 3. Enter

ent’s filing status to complete lines 15, 34,

the result as a decimal . . . . . . .

•

If line 8 does not include any net capital

and 36.

5. Multiply line 1 by line 4 . . . . . . .

gain or qualified dividends, use the Tax

Enter the amount from line 37 of this Schedule D

Table or Tax Computation Worksheet to

6. If no other child has unrecaptured

Tax Worksheet on Form 8615, line 9, and check

figure this tax. But if Schedule J, Income

section 1250 gain, enter -0-.

the box on that line.

Averaging for Farmers and Fishermen, is

Otherwise, repeat lines 1 through

used to figure the tax on the parent’s re-

Figuring 28% rate gain (line 11). If the

5 for each other child who has

turn, use it to figure this tax.

unrecaptured section 1250 gain

child, parent, or any other child has 28% rate

and enter the total of the line 5

gain, figure the amount of 28% rate gain in-

•

If line 8 does include any net capital gain

amounts for those children . . . . .

cluded in the net capital gain on line 8 of Form

or qualified dividends, use the Qualified

8615 using the following worksheet.

7. Enter the amount, if any, from line

Dividends and Capital Gain Tax Work-

19 of the parent’s Schedule D . . .

sheet to figure this tax. For details, see the

Worksheet 1 for Line 11 of the Schedule D

instructions for Form 8615, line 9. How-

8. Add lines 5, 6, and 7. Also include

Tax Worksheet – 28% Rate Gain

ever, if the child, parent, or another child

this amount on the Schedule D

(Line 9 Tax)

has 28% rate gain or unrecaptured section

Tax Worksheet, line 11. . . . . . . .

1250 gain, use the Schedule D Tax Work-

1. Enter the amount, if any, from the

sheet. But if Schedule J is used to figure

child’s Schedule D, line 18. . . . .

the tax on the parent’s return, use it to

Using Schedule J for line 9 tax. Use Sched-

If line 1 is zero or blank, skip

figure this tax.

ule J, Income Averaging for Farmers and Fisher-

lines 2 through 4, enter -0- on

men, to figure the line 9 tax on Form 8615 if

line 5, and go to line 6.

Schedule J is used to figure the tax on the

Using the Schedule D Tax Worksheet for line

2. Enter the amount from the last

parent’s return. First complete the actual Sched-

9 tax. Use the Schedule D Tax Worksheet in

line of the child’s completed

ule J for the parent, then use another Schedule J

the Schedule D instructions to figure the line 9

Line 5 Worksheet in the

as a worksheet to figure the tax to enter on line 9

tax on Form 8615 if the child, parent, or any

instructions for Form 8615, line 8

of Form 8615. (Do not attach this worksheet to

other child has unrecaptured section 1250 gain

the child’s return.)

3. Enter the amount from line 2

or 28% rate gain. If you must use the Schedule

Complete this worksheet Schedule J as fol-

of the child’s completed

D Tax Worksheet, first complete any Schedule

lows.

Line 5 Worksheet . . . . . . . . . . .

D and any actual Schedule D Tax Worksheet

required for the child, parent, or any other child.

4. Divide line 2 by line 3. Enter

1. On line 1, enter the amount from Form

Then figure the line 9 tax using another Sched-

the result as a decimal . . . . . . .

8615, line 8.

ule D Tax Worksheet. (Do not attach this Sched-

5. Multiply line 1 by line 4 . . . . . . .

2. On line 2, enter the amount from the par-

ule D Tax Worksheet to the child’s return.)

ent’s Schedule J, line 2.

6. If no other child has 28% rate

Complete this Schedule D Tax Worksheet as

gain, enter -0-. Otherwise, repeat

follows.

3. Complete line 3 following the Schedule J

lines 1 through 5 above

instructions.

for each other child who has

1. On line 1, enter the amount from Form

28% rate gain and enter the total

4. Complete line 4. If Form 8615, line 8, in-

8615, line 8.

of the line 5 amounts for those

cludes any net capital gain, use the Quali-

2. On line 2, enter the qualified dividends in-

other children . . . . . . . . . . . . .

fied Dividends and Capital Gain Tax

cluded on Form 8615, line 8. (See the ear-

Worksheet to figure the tax amount on this

7. Enter the amount, if any, from line

lier discussion for line 8.)

line. For details on how to use the work-

18 of the parent’s Schedule D. . .

3. On line 3, enter the total of the amounts, if

sheet, see the instructions for Form 8615,

any, on line 4g of all Forms 4952 filed by

line 9, but use the amount on line 3 of this

8. Add lines 5, 6, and 7. Also include

the child, parent, or any other child.

this amount on the Schedule D

worksheet Schedule J (instead of the

Tax Worksheet, line 11. . . . . . .

amount on Form 8615, line 8) in step (1) of

4. On line 4, enter the total of the amounts, if

Using the Qualified Dividends and Capital

any, on line 4e of all Forms 4952 filed by

Gain Tax Worksheet for line 9 tax. How-

the child, parent, or any other child. If ap-

Figuring unrecaptured section 1250 gain

ever, if the child, parent, or any other child

plicable, include instead the smaller

(line 11). If the child, parent, or any other child

has 28% rate gain, or unrecaptured sec-

amount entered on the dotted line next to

has unrecaptured section 1250 gain, figure the

tion 1250 gain, use the Schedule D Tax

line 4e.

amount of unrecaptured section 1250 gain in-

Worksheet. Follow the earlier instructions

5. On lines 5 and 6, follow the worksheet

cluded in the net capital gain on line 8 of Form

under Using the Schedule D Tax Work-

instructions.

8615 using the following worksheet.

sheet for line 9 tax, except use the amount

Page 14

Publication 929 (2006)

Publication 929 - Tax Rules For Children And Dependents - 2006 Page 14

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