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Form 1040 Es

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Form 1040 Es

Form 1040 es Index A Adjusted gross income (AGI) Income limits for, Income Limits Age Age 65, Age 65. Form 1040 es Mandatory retirement age, Payments that are not disability income. Form 1040 es Assistance (see Tax help) C Citizenship requirement, U. Form 1040 es S. Form 1040 es Citizen or Resident Alien Credit figured by IRS, Credit Figured for You Credit figured for you, Credit Figured for You D Disability benefits Nontaxable by law, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Disability income, Disability income. Form 1040 es Disability, permanent and total disability, Qualified Individual, Permanent and total disability. Form 1040 es E Eligibility for credit, Are You Eligible for the Credit? Employer's accident or health plans or pension plans Disability income from, Disability income. Form 1040 es Excess adjusted gross income, Step 3. Form 1040 es Determine Excess Adjusted Gross Income F Figuring the credit yourself, Figuring the Credit Yourself Determine excess AGI, Step 3. Form 1040 es Determine Excess Adjusted Gross Income Determine initial amount, Step 1. Form 1040 es Determine Initial Amount Determine the credit, Step 5. Form 1040 es Determine Your Credit Determine the total of steps 2 and 3, Step 4. Form 1040 es Determine the Total of Steps 2 and 3 Total certain nontaxable pensions and benefits, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Foreign military service Pension, annuity, or disability benefit from, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Foreign Service Pension, annuity, or disability benefit from, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Form RRB-1099 Payments by Railroad Retirement Board, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Form SSA-1099 Social security benefit statement, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Free tax services, Free help with your tax return. Form 1040 es H Head of household, Head of household. Form 1040 es Help (see Tax help) I Income limits, Income Limits Initial amounts for persons under age 65, Initial amounts for persons under age 65. Form 1040 es J Joint returns, Married Persons L Limit on credit, Limit on credit. Form 1040 es Lump-sum payments Accrued annual leave, Payments that are not disability income. Form 1040 es Death benefits paid to surviving spouse or child, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits M Mandatory retirement age, Payments that are not disability income. Form 1040 es Married taxpayers, Married Persons Mentally incompetent persons Sheltered employment for, Sheltered employment. Form 1040 es Missing children Photographs of, Reminders N National Oceanic and Atmospheric Administration Pension, annuity, or disability benefit from, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Nonresident aliens, Exceptions. Form 1040 es Nontaxable payments, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits O Out of work, Substantial gainful activity. Form 1040 es P Pension or annuity payments Nontaxable by law, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Permanent and total disability, Qualified Individual, Permanent and total disability. Form 1040 es Physician certification, Permanent and total disability. Form 1040 es , Physician's statement. Form 1040 es Public Health Service Pension, annuity, or disability benefit from, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Publications (see Tax help) Q Qualified individual, Qualified Individual Age 65 or older, Qualified Individual Under age 65 and retired on permanent and total disability, Qualified Individual, Under Age 65 R Residence requirement, U. Form 1040 es S. Form 1040 es Citizen or Resident Alien S Schedule R, Credit Figured for You, Figuring the Credit Yourself, , Examples Sheltered employment, Sheltered employment. Form 1040 es Social security payments, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Substantial gainful activity, Substantial gainful activity. Form 1040 es T Tables and figures Figure A, Qualified individual determination, Substantial gainful activity. Form 1040 es Table 1, Income limits, Substantial gainful activity. Form 1040 es , Table 1. Form 1040 es Income Limits Table 2, Initial amounts, Table 2. Form 1040 es Initial Amounts Tax help, How To Get Tax Help TTY/TDD information, How To Get Tax Help U U. Form 1040 es S. Form 1040 es citizens and resident aliens, U. Form 1040 es S. Form 1040 es Citizen or Resident Alien V VA Form 21-0172 Certification of permanent and total disability, Veterans. Form 1040 es Veterans Certification by VA of permanent and total disability, Veterans. Form 1040 es Exclusion of nontaxable pension or annuity payment or disability benefits, Step 2. Form 1040 es Total Certain Nontaxable Pensions and Benefits Prev  Up     Home   More Online Publications
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Consumer Protection Offices

City, county, regional, and state consumer offices offer a variety of important services. They might mediate complaints, conduct investigations, prosecute offenders of consumer laws, license and regulate professional service providers, provide educational materials and advocate for consumer rights. To save time, call before sending a written complaint. Ask if the office handles the type of complaint you have and if complaint forms are provided.

State Consumer Protection Offices

Office of the Attorney General

Website: Office of the Attorney General

Address: Office of the Attorney General
Consumer Protection Unit
123 State Capitol
200 W. 24th St.
Cheyenne, WY 82002

Phone Number: 307-777-7841

TTY: 307-777-5351

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Banking Authorities

The officials listed in this section regulate and supervise state-chartered banks. Many of them handle or refer problems and complaints about other types of financial institutions as well. Some also answer general questions about banking and consumer credit. If you are dealing with a federally chartered bank, check Federal Agencies.

Department of Audit

Website: Department of Audit

Address: Department of Audit
Division of Banking
122 W. 25th St.
Herschler Building, 3rd Floor, East
Cheyenne, WY 82002

Phone Number: 307-777-7797

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Insurance Regulators

Each state has its own laws and regulations for each type of insurance. The officials listed in this section enforce these laws. Many of these offices can also provide you with information to help you make informed insurance buying decisions.

Department of Insurance

Website: Department of Insurance

Address: Department of Insurance
Consumer Affairs Section
106 E. 6th Ave.
Cheyenne, WY 82002

Phone Number: 307-777-7401

Toll-free: 1-800-438-5768 (WY)

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Securities Administrators

Each state has its own laws and regulations for securities brokers and securities - including stocks, mutual funds, commodities, real estate, etc. The officials and agencies listed in this section enforce these laws and regulations. Many of these offices can also provide information to help you make informed investment decisions.

Office of the Secretary of State

Website: Office of the Secretary of State

Address: Office of the Secretary of State
Compliance Division
State Capitol Building
200 W. 24th St.
Cheyenne, WY 82002-0020

Phone Number: 307-777-7370

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Utility Commissions

State Utility Commissions regulate services and rates for gas, electricity and telephones within your state. In some states, the utility commissions regulate other services such as water, transportation, and the moving of household goods. Many utility commissions handle consumer complaints. Sometimes, if a number of complaints are received about the same utility matter, they will conduct investigations.

Public Service Commission

Website: Public Service Commission

Address: Public Service Commission
2515 Warren Ave., Suite 300
Cheyenne, WY 82002

Phone Number: 307-777-7427

Toll-free: 1-888-570-9905 (WY)

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The Form 1040 Es

Form 1040 es 31. Form 1040 es   Tax on Unearned Income of Certain Children Table of Contents What's New Introduction Useful Items - You may want to see: Which Parent's Return To UseParents Who Do Not File a Joint Return Parent's Election To Report Child's Interest and DividendsEffect of Making the Election Figuring Child's Income Figuring Additional Tax Tax for Certain Children Who Have Unearned IncomeProviding Parental Information (Form 8615, lines A–C) Step 1. Form 1040 es Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Form 1040 es Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Form 1040 es Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. Form 1040 es . Form 1040 es  For tax years beginning after December 31, 2012, a child whose tax is figured on Form 8615 may be subject to the Net Investment Income Tax (NIIT). Form 1040 es NIIT is a 3. Form 1040 es 8% tax on the lesser of the net investment income or the excess of the child's modified adjusted gross income (MAGI) over the threshold amount. Form 1040 es Use Form 8960, Net Investment Income Tax, to figure this tax. Form 1040 es For more information on NIIT, go to www. Form 1040 es irs. Form 1040 es gov and enter “Net Investment Income Tax” in the search box. Form 1040 es Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. Form 1040 es If the child's interest and dividend income (including capital gain distributions) total less than $10,000, the child's parent may be able to choose to include that income on the parent's return rather than file a return for the child. Form 1040 es (See Parent's Election To Report Child's Interest and Dividends , later. Form 1040 es ) If the child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Form 1040 es (See Tax for Certain Children Who Have Unearned Income , later. Form 1040 es ) For these rules, the term “child” includes a legally adopted child and a stepchild. Form 1040 es These rules apply whether or not the child is a dependent. Form 1040 es Useful Items - You may want to see: Publication 929 Tax Rules for Children and Dependents Form (and Instructions) 8615 Tax for Certain Children Who Have Unearned Income 8814 Parents' Election To Report Child's Interest and Dividends Which Parent's Return To Use If a child's parents are married to each other and file a joint return, use the joint return to figure the tax on the child's unearned income. Form 1040 es The tax rate and other return information from that return are used to figure the child's tax as explained later under Tax for Certain Children Who Have Unearned Income . Form 1040 es Parents Who Do Not File a Joint Return For parents who do not file a joint return, the following discussions explain which parent's tax return must be used to figure the tax. Form 1040 es Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Form 1040 es Parents are married. Form 1040 es   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Form 1040 es Parents not living together. Form 1040 es   If the child's parents are married to each other but not living together, and the parent with whom the child lives (the custodial parent) is considered unmarried, use the return of the custodial parent. Form 1040 es If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Form 1040 es   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in chapter 2. Form 1040 es Parents are divorced. Form 1040 es   If the child's parents are divorced or legally separated, and the parent who had custody of the child for the greater part of the year (the custodial parent) has not remarried, use the return of the custodial parent. Form 1040 es Custodial parent remarried. Form 1040 es   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Form 1040 es Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Form 1040 es Do not use the return of the noncustodial parent. Form 1040 es   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Form 1040 es If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Form 1040 es Parents never married. Form 1040 es   If a child's parents have never been married to each other, but lived together all year, use the return of the parent with the greater taxable income. Form 1040 es If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Form 1040 es Widowed parent remarried. Form 1040 es   If a widow or widower remarries, the new spouse is treated as the child's other parent. Form 1040 es The rules explained earlier under Custodial parent remarried apply. Form 1040 es Parent's Election To Report Child's Interest and Dividends You may be able to elect to include your child's interest and dividend income (including capital gain distributions) on your tax return. Form 1040 es If you do, your child will not have to file a return. Form 1040 es You can make this election only if all the following conditions are met. Form 1040 es Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Form 1040 es Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Form 1040 es The child's gross income was less than $10,000. Form 1040 es The child is required to file a return unless you make this election. Form 1040 es The child does not file a joint return for the year. Form 1040 es No estimated tax payment was made for the year, and no overpayment from the previous year (or from any amended return) was applied to this year under your child's name and social security number. Form 1040 es No federal income tax was taken out of your child's income under the backup withholding rules. Form 1040 es You are the parent whose return must be used when applying the special tax rules for children. Form 1040 es (See Which Parent's Return To Use , earlier. Form 1040 es ) These conditions are also shown in Figure 31-A. Form 1040 es Certain January 1 birthdays. Form 1040 es   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Form 1040 es You cannot make this election for such a child unless the child was a full-time student. Form 1040 es   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Form 1040 es You cannot make this election for such a child. Form 1040 es Full-time student. Form 1040 es   A full-time student is a child who during some part of each of any 5 calendar months of the year was enrolled as a full-time student at a school, or took a full-time on-farm training course given by a school or a state, county, or local government agency. Form 1040 es A school includes a technical, trade, or mechanical school. Form 1040 es It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. Form 1040 es How to make the election. Form 1040 es   Make the election by attaching Form 8814 to your Form 1040. Form 1040 es (If you make this election, you cannot file Form 1040A or Form 1040EZ. Form 1040 es ) Attach a separate Form 8814 for each child for whom you make the election. Form 1040 es You can make the election for one or more children and not for others. Form 1040 es Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Form 1040 es Rate may be higher. Form 1040 es   If your child received qualified dividends or capital gain distributions, you may pay up to $100 more tax if you make this election instead of filing a separate tax return for the child. Form 1040 es This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Form 1040 es However, if you file a separate return for the child, the tax rate may be as low as 0% (zero percent) because of the preferential tax rates for qualified dividends and capital gain distributions. Form 1040 es Deductions you cannot take. Form 1040 es   By making the Form 8814 election, you cannot take any of the following deductions that the child would be entitled to on his or her return. Form 1040 es The additional standard deduction if the child is blind. Form 1040 es The deduction for a penalty on an early withdrawal of your child's savings. Form 1040 es Itemized deductions (such as your child's investment expenses or charitable contributions). Form 1040 es Reduced deductions or credits. Form 1040 es   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. Form 1040 es Deduction for contributions to a traditional individual retirement arrangement (IRA). Form 1040 es Deduction for student loan interest. Form 1040 es Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Form 1040 es Credit for child and dependent care expenses. Form 1040 es Child tax credit. Form 1040 es Education tax credits. Form 1040 es Earned income credit. Form 1040 es Penalty for underpayment of estimated tax. Form 1040 es   If you make this election for 2013 and did not have enough tax withheld or pay enough estimated tax to cover the tax you owe, you may be subject to a penalty. Form 1040 es If you plan to make this election for 2014, you may need to increase your federal income tax withholding or your estimated tax payments to avoid the penalty. Form 1040 es See chapter 4 for more information. Form 1040 es Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Form 1040 es Only the amount over $2,000 is added to your income. Form 1040 es The amount over $2,000 is shown on Form 8814, line 6. Form 1040 es Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Form 1040 es Include the amount from Form 8814, line 12, on Form 1040, line 21. Form 1040 es Enter “Form 8814” on the dotted line next to line 21. Form 1040 es If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040, line 21. Form 1040 es Capital gain distributions and qualified dividends. Form 1040 es   If your child's dividend income included any capital gain distributions, see Capital gain distributions under Figuring Child's Income in Publication 929, Part 2. Form 1040 es If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. Form 1040 es Figuring Additional Tax Use Form 8814, Part II, to figure the tax on the $2,000 of your child's interest and dividends that you do not include in your income. Form 1040 es This tax is added to the tax figured on your income. Form 1040 es This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. Form 1040 es Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. Form 1040 es Check box a on Form 1040, line 44. Form 1040 es Figure 31-A. Form 1040 es Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Form 1040 es Figure 31–A. Form 1040 es Can You Include Your Child's Income On Your Tax Return? Tax for Certain Children Who Have Unearned Income If a child's interest, dividends, and other unearned income total more than $2,000, part of that income may be taxed at the parent's tax rate instead of the child's tax rate. Form 1040 es If the parent does not or cannot choose to include the child's income on the parent's return, use Form 8615 to figure the child's tax. Form 1040 es Attach the completed form to the child's Form 1040 or Form 1040A. Form 1040 es When Form 8615 must be filed. Form 1040 es   Form 8615 must be filed for a child if all of the following statements are true. Form 1040 es The child's investment income was more than $2,000. Form 1040 es The child is required to file a return for 2013. Form 1040 es The child either: Was under age 18 at the end of the year, Was age 18 at the end of the year and did not have earned income that was more than half of his or her support, or Was over age 18 and under age 24 at the end of the year, was a full-time student, and did not have earned income that was more than half of his or her support. Form 1040 es At least one of the child's parents was alive at the end of 2013. Form 1040 es The child does not file a joint return for 2013. Form 1040 es These conditions are also shown in  Figure 31-B. Form 1040 es Earned income. Form 1040 es   Earned income includes salaries, wages, tips, and other payments received for personal services performed. Form 1040 es It does not include unearned income as defined later in this chapter. Form 1040 es Support. Form 1040 es   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. Form 1040 es To figure your child's support, count support provided by you, your child, and others. Form 1040 es However, a scholarship received by your child is not considered support if your child is a full-time student. Form 1040 es See chapter 3 for details about support. Form 1040 es Certain January 1 birthdays. Form 1040 es   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Form 1040 es Figure 31-B. Form 1040 es Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Form 1040 es Figure 31-B. Form 1040 es Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. Form 1040 es . Form 1040 es . Form 1040 es THEN, at the end of 2013, the child is considered to be. Form 1040 es . Form 1040 es . Form 1040 es January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Form 1040 es The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Form 1040 es  **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. Form 1040 es  ***Do not use Form 8615 for this child. Form 1040 es Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. Form 1040 es (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Form 1040 es ) On line C, check the box for the parent's filing status. Form 1040 es See Which Parent's Return To Use at the beginning of this chapter for information on which parent's return information must be used on Form 8615. Form 1040 es Parent with different tax year. Form 1040 es   If the parent and the child do not have the same tax year, complete Form 8615 using the information on the parent's return for the tax year that ends in the child's tax year. Form 1040 es Parent's return information not known timely. Form 1040 es   If the information needed from the parent's return is not known by the time the child's return is due (usually April 15), you can file the return using estimates. Form 1040 es   You can use any reasonable estimate. Form 1040 es This includes using information from last year's return. Form 1040 es If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Form 1040 es    When you get the correct information, file an amended return on Form 1040X, Amended U. Form 1040 es S. Form 1040 es Individual Income Tax Return. Form 1040 es   Instead of using estimates, you can get an automatic 6-month extension of time to file if, by the date your return is due, you file Form 4868, Application for Automatic Extension of Time To File U. Form 1040 es S. Form 1040 es Individual Income Tax Return. Form 1040 es Extensions are discussed in chapter 1. Form 1040 es Step 1. Form 1040 es Figuring the Child's Net Unearned Income (Form 8615, Part I) The first step in figuring a child's tax using Form 8615 is to figure the child's net unearned income. Form 1040 es To do that, use Form 8615, Part I. Form 1040 es Line 1 (unearned income). Form 1040 es   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. Form 1040 es Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. Form 1040 es Form 1040EZ cannot be used if Form 8615 must be filed. Form 1040 es   If the child had earned income, figure the amount to enter on Form 8615, line 1, by using the worksheet in the instructions for the form. Form 1040 es   However, if the child has: excluded any foreign earned income, deducted either a loss from self-employment, or deducted a net operating loss from another year, then use the Alternate Worksheet for Form 8615, Line 1, in Publication 929 to figure the amount to enter on Form 8615, line 1. Form 1040 es Unearned income defined. Form 1040 es   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. Form 1040 es It includes taxable interest, dividends (including capital gain distributions), capital gains, unemployment compensation, the taxable part of social security and pension payments, and certain distributions from trusts. Form 1040 es Unearned income includes amounts produced by assets the child obtained with earned income (such as interest on a savings account into which the child deposited wages). Form 1040 es Nontaxable income. Form 1040 es   For this purpose, unearned income includes only amounts the child must include in total income. Form 1040 es Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Form 1040 es Income from property received as a gift. Form 1040 es   A child's unearned income includes all income produced by property belonging to the child. Form 1040 es This is true even if the property was transferred to the child, regardless of when the property was transferred or purchased or who transferred it. Form 1040 es   A child's unearned income includes income produced by property given as a gift to the child. Form 1040 es This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Form 1040 es Example. Form 1040 es Amanda Black, age 13, received the following income. Form 1040 es Dividends — $800 Wages — $2,100 Taxable interest — $1,200 Tax-exempt interest — $100 Net capital gains — $100 The dividends were qualified dividends on stock given to her by her grandparents. Form 1040 es Amanda's unearned income is $2,100. Form 1040 es This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). Form 1040 es Her wages are earned (not unearned) income because they are received for work actually done. Form 1040 es Her tax-exempt interest is not included because it is nontaxable. Form 1040 es Trust income. Form 1040 es   If a child is the beneficiary of a trust, distributions of taxable interest, dividends, capital gains, and other unearned income from the trust are unearned income to the child. Form 1040 es   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. Form 1040 es Line 2 (deductions). Form 1040 es   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. Form 1040 es   If the child does itemize deductions, enter on line 2 the larger of: $1,000 plus the portion of the child's itemized deductions on Schedule A (Form 1040), line 29, that are directly connected with the production of unearned income entered on line 1, or $2,000. Form 1040 es Directly connected. Form 1040 es   Itemized deductions are directly connected with the production of unearned income if they are for expenses paid to produce or collect taxable income or to manage, conserve, or maintain property held for producing income. Form 1040 es These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Form 1040 es   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Form 1040 es Only the amount greater than 2% of the child's adjusted gross income can be deducted. Form 1040 es See chapter 28 for more information. Form 1040 es Example 1. Form 1040 es Roger, age 12, has unearned income of $8,000, no other income, no adjustments to income, and itemized deductions of $300 (net of the 2% limit) that are directly connected with his unearned income. Form 1040 es His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Form 1040 es Roger enters $2,000 on line 2 because that is more than the total of $1,000 plus his directly connected itemized deductions of $300. Form 1040 es Example 2. Form 1040 es Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Form 1040 es She has no other income. Form 1040 es She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. Form 1040 es Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Form 1040 es The amount on line 2 is $2,050. Form 1040 es This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Form 1040 es Line 3. Form 1040 es   Subtract line 2 from line 1 and enter the result on this line. Form 1040 es If zero or less, do not complete the rest of the form. Form 1040 es However, you must still attach Form 8615 to the child's tax return. Form 1040 es Figure the tax on the child's taxable income in the normal manner. Form 1040 es Line 4 (child's taxable income). Form 1040 es   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. Form 1040 es   However, if the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, see the Form 8615 instructions or Pub. Form 1040 es 929. Form 1040 es Line 5 (net unearned income). Form 1040 es   A child's net unearned income cannot be more than his or her taxable income. Form 1040 es Enter on Form 8615, line 5, the smaller of line 3 or line 4. Form 1040 es This is the child's net unearned income. Form 1040 es   If zero or less, do not complete the rest of the form. Form 1040 es However, you must still attach Form 8615 to the child's tax return. Form 1040 es Figure the tax on the child's taxable income in the normal manner. Form 1040 es Step 2. Form 1040 es Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) The next step in completing Form 8615 is to figure a tentative tax on the child's net unearned income at the parent's tax rate. Form 1040 es The tentative tax at the parent's tax rate is the difference between the tax on the parent's taxable income figured with the child's net unearned income (plus the net unearned income of any other child whose Form 8615 includes the tax return information of that parent) and the tax figured without it. Form 1040 es When figuring the tentative tax at the parent's tax rate on Form 8615, do not refigure any of the exclusions, deductions, or credits on the parent's return because of the child's net unearned income. Form 1040 es For example, do not refigure the medical expense deduction. Form 1040 es Figure the tentative tax on Form 8615, lines 6 through 13. Form 1040 es Note. Form 1040 es If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. Form 1040 es Line 6 (parent's taxable income). Form 1040 es   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. Form 1040 es   If the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) was used to figure the parent's tax, enter the amount from line 3 of that worksheet instead of the parent's taxable income. Form 1040 es Line 7 (net unearned income of other children). Form 1040 es   If the tax return information of the parent is also used on any other child's Form 8615, enter on line 7 the total of the amounts from line 5 of all the other children's Forms 8615. Form 1040 es Do not include the amount from line 5 of the Form 8615 being completed. Form 1040 es Example. Form 1040 es Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Form 1040 es The children's net unearned income amounts on line 5 of their Forms 8615 are: Sharon — $800 Jerry — $600 Mike — $1,000 Line 7 of Sharon's Form 8615 will show $1,600, the total of the amounts on line 5 of Jerry's and Mike's Forms 8615. Form 1040 es Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Form 1040 es Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Form 1040 es Other children's information not available. Form 1040 es   If the net unearned income of the other children is not available when the return is due, either file the return using estimates or get an extension of time to file. Form 1040 es See Parent's return information not known timely , earlier. Form 1040 es Line 11 (tentative tax). Form 1040 es   Subtract line 10 from line 9 and enter the result on this line. Form 1040 es This is the tentative tax. Form 1040 es   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. Form 1040 es Also skip the discussion for lines 12a and 12b that follows. Form 1040 es Lines 12a and 12b (dividing the tentative tax). Form 1040 es   If an amount is entered on line 7, divide the tentative tax shown on line 11 among the children according to each child's share of the total net unearned income. Form 1040 es This is done on lines 12a, 12b, and 13. Form 1040 es Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. Form 1040 es Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. Form 1040 es Example. Form 1040 es In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. Form 1040 es The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). Form 1040 es The decimal on line 12b is  . Form 1040 es 333, figured as follows and rounded to three places. Form 1040 es   $800 = . Form 1040 es 333     $2,400   Step 3. Form 1040 es Figuring the Child's Tax (Form 8615, Part III) The final step in figuring a child's tax using Form 8615 is to determine the larger of: The total of: The child's share of the tentative tax based on the parent's tax rate, plus The tax on the child's taxable income in excess of net unearned income, figured at the child's tax rate, or The tax on the child's taxable income, figured at the child's tax rate. Form 1040 es This is the child's tax. Form 1040 es It is figured on Form 8615, lines 14 through 18. Form 1040 es Alternative minimum tax. Form 1040 es   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. Form 1040 es See Alternative Minimum Tax (AMT) in chapter 30. Form 1040 es    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. Form 1040 es For information on special limits that apply to a child who files Form 6251, see Certain Children Under Age 24 in the Instructions for Form 6251. Form 1040 es Prev  Up  Next   Home   More Online Publications