General Instructions

Table of Contents

Future Developments

For the latest information about developments related to Form 8615 and its instructions, such as legislation enacted after they were published, go to www.irs.gov/form8615.

Purpose of Form

For children under age 18 and certain older children described below in Who Must File, investment income over $1,900 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's investment income is more than $1,900, use Form 8615 to figure the child's tax.

Investment Income

For Form 8615, “investment income” includes all taxable income other than earned income as defined later. Investment income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, and income (other than earned income) received as the beneficiary of a trust.

Who Must File

Form 8615 must be filed for any child who meets all of the following conditions.

  1. The child had more than $1,900 of investment income.

  2. The child is required to file a tax return.

  3. The child either:

    1. Was under age 18 at the end of 2012,

    2. Was age 18 at the end of 2012 and did not have earned income that was more than half of the child's support, or

    3. Was over age 18 and under age 24 at the end of 2012, was a full-time student, and did not have earned income that was more than half of the child's support.

    (Earned income is defined later. Support is defined below.)

  4. At least one of the child's parents was alive at the end of 2012.

  5. The child does not file a joint return for 2012.

Support.   Your child's support includes all amounts spent to provide the child with food, lodging, clothing, education, medical and dental care, recreation, transportation, and similar necessities. To figure your child's support, count support provided by you, your child, and others. However, a scholarship received by your child is not considered support if your child is a full-time student. For details, see Pub. 501, Exemptions, Standard Deduction, and Filing Information.

Certain January 1 birthdays.   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under Who Must File.
IF a child was born on... THEN, at the end of 2012, the child is considered to be...
January 1, 1995 18*
January 1, 1994 19**
January 1, 1989 24***
*This child is not under age 18. The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. 
**This child meets condition 3 only if the child was a full-time student who did not have earned income that was more than half of the child's support. 
***Do not use Form 8615 for this child.

The parent may be able to elect to report the child's interest, ordinary dividends, and capital gain distributions on the parent's return. If the parent makes this election, the child will not have to file a return or Form 8615. However, the federal income tax on the child's income, including qualified dividends and capital gain distributions, may be higher if this election is made. For more details, see Form 8814, Parents' Election To Report Child's Interest and Dividends.

Additional Information

For more details, see Pub. 929, Tax Rules for Children and Dependents.

Incomplete Information for Parent or Other Children

If the parent's taxable income, filing status, or the net investment income of the parent's other children is not known by the due date of the child's return, reasonable estimates can be used. Enter “Estimated” next to the appropriate line(s) of Form 8615. When the correct information is available, file Form 1040X, Amended U.S. Individual Income Tax Return.

Instead of using estimates, the child can get an automatic 6-month extension of time to file. For details, see Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.

Amended Return

If after the child's return is filed, the parent's taxable income changes or the net investment income of any of the parent's other children changes, the child's tax must be refigured using the adjusted amounts. If the child's tax changes, file Form 1040X to correct the child's tax.

Alternative Minimum Tax

A child whose tax is figured on Form 8615 may owe the alternative minimum tax. For details, see Form 6251, Alternative Minimum Tax—Individuals, and its instructions.

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