Get the free Form 8615 - irs

This form is used to calculate the tax for children under the age of 14 who have investment income exceeding $1,100, which will be taxed at the parent's rate if that rate is higher than the child's

How to fill out form 8615 - irs

How to fill out Form 8615

1. Gather all necessary information about the dependent child, including their income and tax-related details.
2. Begin by entering the child's name and Social Security number at the top of Form 8615.
3. Complete Part I by indicating the year for which you are filing the form.
4. In Part II, provide the child's unearned income, such as interest and dividends, on the specified lines.
5. Calculate the child's total taxable income by following the instructions for calculating adjusted gross income.
6. Proceed to Part III to determine if the child is subject to the 'kiddie tax' and to calculate the tax owed on their unearned income.
7. After completing all calculations, ensure the form is signed and dated by the appropriate person, typically the parent or guardian.
8. Attach Form 8615 to the child's tax return when filing.

Who needs Form 8615?

1. Form 8615 is required for children under age 18 or certain full-time students under age 24 who have unearned income over a specified threshold.
2. It is typically used by dependents whose investment income exceeds $2,300 (as of 2023) and who are expected to be taxed at their parents' rates.

People Also Ask about

What is the IRS form 8615 used for?

Purpose of Form For children under age 18 and certain older children described below in Who Must File , unearned income over $2,600 is taxed at the parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,600, use Form 8615 to figure the child's tax.

Why does Turbotax want me to fill out form 8615?

Form 8615 is used to calculate taxes on children's unearned income, which is taxed at a higher rate than income earned by children. The federal government introduced this tax rate to curb instances of parents putting investments under children's names to avoid paying higher taxes on them.

What is the difference between 8615 and 8814?

Forms 8615 or 8814 - Which Form Do I Need? If you are completing the parents' return, DO NOT enter the information for Form 8615 Tax for Certain Children Who Have Unearned Income but DO complete Form 8814 Parents' Election To Report Child's Interest and Dividends.

Who needs to fill out form 8615?

Unearned income includes all forms of investment income, such as interest, dividends, rent, and capital gains. A child who has more than $2,600 in unearned income in 2024 and meets certain qualifications should use IRS Form 8615 when filing a tax return.

What is the tax rate for form 8615?

Net Investment Income Tax (NIIT) A child whose tax is figured on Form 8615 may be subject to the NIIT. NIIT is a 3.8% tax on the lesser of net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. Use Form 8960, Net Investment Income Tax, to figure this tax.

What is the purpose of form 8814?

Parents use this form to report their child's income on their return, so their child will not have to file a return.

What is the difference between form 8615 and 8814?

The choice to file Form 8814 Parents' Election To Report Child's Interest and Dividends with the parents' return or Form 8615 Tax for Certain Children Who Have Unearned Income with the child's return is one to be made by the preparer of the return.

For pdfFiller’s FAQs

What is Form 8615?

Form 8615 is a tax form used in the United States to calculate the tax on a child's unearned income, which may be subject to the 'kiddie tax.'

Who is required to file Form 8615?

Form 8615 must be filed by any child who has more than a certain amount of unearned income and meets specific age and filing status requirements.

How to fill out Form 8615?

To fill out Form 8615, you need to provide information regarding the child's income, the parent's tax information, and calculate the tax based on the unearned income.

What is the purpose of Form 8615?

The purpose of Form 8615 is to determine the tax liability on a child's unearned income, ensuring that such income is taxed at the parent's tax rate if it exceeds the threshold.

What information must be reported on Form 8615?

Form 8615 requires reporting of the child's name, social security number, the amount of unearned income, the parent's taxable income, and other relevant personal information.