Who must file form 8615?
For 2020, a child must file Form 8615 if all of the following conditions apply:
- The child has more than $2,200 in unearned income
- The child is required to file a tax return
- The child does not file a joint tax return with a spouse
- At least one of the child's parents is alive
- The child is within certain age limits
For tax purposes, the child's "age" is the age on December 31. The child must file the form if any of these conditions apply:
- The child is under 18 at the end of the year
- The child is 18 years old and does not have earned income that is more than half of the child's support for the year, or
- The child was a full-time student age 19-23 and does not have earned income that is more than half of the child's support
Treatment of unearned income
In general, in 2020 the first $1,100 worth of a child's unearned income is tax-free. The next $1,100 is taxed at the child's income tax rate for 2020. Anything above $2,200, however, is taxed at the rate that applies to trusts and estates, which usually is higher than the child's rate. This tax treatment has gained a nickname: the "kiddie tax." Calculating how much tax applies to the child's income is the purpose of Form 8615.
Information on the form
When filing the form, you must provide the child's name and Social Security Number (SSN) and the name and Social Security Number of a parent, as well as which filing status the parent is using, such as single, joint or married filing separately. The form has three parts:
- Part I identifies the child's unearned income and how much of it is subject to the kiddie tax
- Part II calculates the kiddie tax
