Form 8615

What Is Form 8615?

If you are looking for what is tax form 8615, you have come to the right place. This form is called Tax for Certain Children Who Have Unearned Income. It is used only with the 1040NR or 1040 form for the child. The 8615 form was created by the IRS in an attempt to prevent fraud that some parents provide by putting their money in the accounts of their children to avoid taxes.

Before this form was created, parents were willing to use the gap in the law that offered lower taxation for children than for adults. Government believes that since children don’t have an income, they don’t earn money and don’t need to pay taxes. This is why some business-oriented parents transfer their income to their children’s accounts to avoid taxes in the full measure.

Once the investment receives profit, it is charged with a lower rate since it is made on behalf of the child. Noticing the rising amount of similar cases, the IRS decided to end this scheme and to change the rules for the tax treatment of unearned children’s income. Now it is taxes as the tax rate of the parent.

What Do I Need the Form 8615 For?

• You need tax form 8615 in specific cases. The child must have the unearned income that matches conditions dictated by the IRS, including the $2,300 income and over, child files the tax return as well, there is no joint tax return with the spouse. The parents or at least one of them, are alive. This document is filled if the child meets the age limits;
• Parents have to help their child to learn what is form 8615 used for and how to use it in advance. Also, there are detailed instructions, you may still need to explain everything several times. The child in the form must be smaller than 18 before the end of the tax year.

How to Fill Out Form 8615?

You may find form 8615 PDF version on the IRS official website. Use the searching bar there to find the document you need. It does not take much time. You will see instructions for form 8615 there as well. However, there are no tools for you to fill out the document online.

If you want to complete the form on your computer without the need to download software or print it out on paper, use an online editor like PDFLiner. This program contains the tools you need to fill the empty sections while you are connected to the Internet. After you complete it, simply save on your device, send online, or print and send by regular mail to the IRS. To fill out the document online, follow the next IRS form 8615 instructions:

1. Provide information about the child’s name, social security number, parent’s name, and SSN of the parent;
2. Pick the status of the parent and put the tick in the most appropriate box;
3. Describe the net unearned income of the child in part 1, including the deductions, taxable income, and unearned income;
4. Provide information on the tentative tax based on the tax rate of the child's parent, including detailed information on the taxable income of the parent, other children’s income if there are any. Calculate the numbers based on the IRS instructions;
5. Include the information on the child’s tax in part 3. Calculate everything a child receives.

Organizations That Work With Form 8615

• Department of the Treasury Internal Revenue Service.