Get the free Form 8615 - irs

This form is used to calculate the tax for children under 14 with investment income exceeding $1,300, which is taxed at the parent's rate if that rate is higher than the child's rate.

How to fill out form 8615 - irs

How to fill out Form 8615

1. Obtain Form 8615 from the IRS website or your tax preparation software.
2. Provide your name and Social Security number at the top of the form.
3. Determine if you meet the criteria of a child who is required to file this form (under age 18, part of the income calculation).
4. Fill out Section A, which requires the child’s investment income and deductions.
5. Complete Section B, which covers the tax computation based on the child's taxable income.
6. Review all the entries for accuracy.
7. Sign and date the form before filing it along with your tax return.

Who needs Form 8615?

1. Children under age 18 who have unearned income exceeding $2,300.
2. Children aged 18 to 24 who are full-time students and have unearned income exceeding $2,300.
3. Parents who need to report their child's investment income on their tax return.

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 by certain children who have unearned income over a specific threshold to calculate the tax on that income at their parents' tax rate instead of their own, which may be lower.

Who is required to file Form 8615?

Form 8615 must be filed by children who are under the age of 18 at the end of the tax year, who have unearned income exceeding $2,300, and whose unearned income does not exceed the threshold set by the IRS for the parent's tax rate application.

How to fill out Form 8615?

To fill out Form 8615, taxpayers need to provide information about the child's unearned income, calculate the tax on that income using the parent's tax rate, and report relevant details such as the child's name, Social Security number, and the parent's tax return information.

What is the purpose of Form 8615?

The purpose of Form 8615 is to prevent higher earners in families from shifting unearned income to their children to benefit from lower tax rates, thereby ensuring that children with significant unearned income are taxed more appropriately.

What information must be reported on Form 8615?

Form 8615 requires reporting of the child's name, Social Security number, details about unearned income, the parent's taxable income, and the calculated tax based on the parent's rate, along with other relevant financial information.