What is Form 8615?
Form 8615, known as the "Tax for Certain Children Who Have Unearned Income," is an IRS form designed to calculate taxes on investment income earned by children. This form is crucial because it ensures that unearned income, like interest, dividends, and capital gains, is taxed at a higher rate. The purpose is to prevent parents from sidestepping taxes by shifting investments to their children's names. By applying these higher tax rates to minors' unearned income, the form promotes fairness in the tax system.
What is Form 8615 used for?
Form 8615 is important for managing taxes on children's unearned income. Here’s what it’s used for:
- Reporting Unearned Income: It reports investment income like interest and dividends for minors.
- Calculating Tax Liability: It calculates the tax owed on that income, which can differ from the parent's tax rate.
- Preventing Tax Evasion: It helps stop parents from moving investments to their children to dodge higher taxes.
- Ensuring Proper Reporting: It makes sure that a child's unearned income is reported and taxed correctly by the IRS.
How to fill out Form 8615?
- 1
Check if the child's unearned income exceeds $2,600 and confirm other conditions.
- 2
Gather the child's name, SSN, and the parent's name, SSN, and filing status.
- 3
Calculate the child's unearned income and taxable income.
- 4
Determine the parent's tax rate and calculate the child's tax.
- 5
Enter the values on the correct lines of Form 8615.
- 6
Attach Form 8615 to the child's tax return.
Who is required to fill out Form 8615?
Parents or guardians of children with unearned income exceeding $2,500 are responsible for completing Form 8615. This includes those whose children are under 18 or full-time students aged 19-23 with limited earned income.
After completing the form, parents attach it to their tax return to report and calculate the child's tax on unearned income.
When is Form 8615 not required?
Form 8615 is not required if the child has under $2,600 in unearned income, doesn't have to file a tax return, or files jointly with a spouse. Also, if both parents passed away by year-end, the form isn't needed. Children aged 18 or older with earned income exceeding half their support, or those who are not full-time students aged 19-23, also do not need to file this form.
When is Form 8615 due?
The deadline for Form 8615 is the same as the usual tax return deadline, typically April 15. This form must be filed when a child has more than $2,600 in unearned income and meets age and support criteria. Remember, the child must file a tax return and cannot file jointly, and at least one parent should be alive.
How to get a blank Form 8615?
Form 8615, issued by the Internal Revenue Service (IRS), is for tax on certain children with unearned income. Our platform has a blank version of this form ready for you to fill out. Remember, PDF Guru aids in filling and downloading but not filing forms.
Do you need to sign Form 8615?
No, you do not need to sign Form 8615. This form is generally completed by parents or guardians to report a child's unearned income on their tax return. However, it's a good idea to check the latest updates, as requirements can change. With PDF Guru, you can fill out the form, download it, and handle any other necessary steps outside our platform, as we do not support submission.
Where to file Form 8615?
Once you've completed Form 8615, you can submit it electronically through the IRS website. This method is quick and efficient for filing your taxes.
If you prefer mailing, send your completed form to the IRS address designated for paper tax returns in either Ogden, UT, or Cincinnati, OH. Remember to keep a copy for your records.
