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State Income Tax Forms 2011

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State Income Tax Forms 2011

State income tax forms 2011 Part Three -   Quarterly Filing Information Table of Contents 12. State income tax forms 2011   Filing Form 720Attachments to Form 720. State income tax forms 2011 Conditions to allowance. State income tax forms 2011 13. State income tax forms 2011   Payment of TaxesHow To Make Deposits When To Make Deposits Amount of DepositsSafe Harbor Rule 14. State income tax forms 2011   Penalties and Interest 15. State income tax forms 2011   Examination and Appeal Procedures 16. State income tax forms 2011   Rulings Program 17. State income tax forms 2011   How To Get Tax Help 18. State income tax forms 2011   Appendix Prev  Up  Next   Home   More Online Publications
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Face-to-face Tax Help

IRS Taxpayer Assistance Centers (TACs) are your source for personal tax help when you believe your tax issue can only be handled face-to-face. No appointment is necessary.

Keep in mind, many questions can be resolved online without waiting in line. Through IRS.gov you can:
• Set up a payment plan.
• Get a transcript of your tax return.
• Make a payment.
• Check on your refund.
• Find answers to many of your tax questions.

We are now referring all requests for tax return preparation services to other available resources. You can take advantage of free tax preparation through Free File, Free File Fillable Forms or through a volunteer site in your community. To find the nearest volunteer site location or to get more information about Free File, go to the top of the page and enter “Free Tax Help” in the Search box.

If you have a tax account issues and feel that it requires talking with someone face-to-face, visit your local TAC.

Caution:  Many of our offices are located in Federal Office Buildings. These buildings may not allow visitors to bring in cell phones with camera capabilities.

Multilingual assistance is available in every office. Hours of operation are subject to change.

Before visiting your local office click on "Services Provided" in the chart below to see what services are available. Services are limited and not all services are available at every TAC office and may vary from site to site. You can get these services on a walk-in basis.

City  Street Address  Days/Hours of Service  Telephone* 
Bend 

250 NW Franklin Ave.
Bend, OR  97701

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:30 p.m. - 1:30 p.m.)

 

Services Provided

(541) 706-5732
Eugene 211 E 7th           
Eugene, OR 97401

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(541) 342-8766
Medford 960 Ellendale Dr.
Medford, OR 97504

Monday-Friday 8:30 a.m.- 4:30 p.m.
(Closed for lunch 12:00 noon - 1:30 p.m.)

 

Services Provided

(541) 282-1350
Portland 1220 SW Third Ave.
Portland, OR  97204
 

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 265-3501
Salem

1660 Oak St. S.E.
Salem, OR  97301

Monday-Friday 8:30 a.m.- 4:30 p.m.

 

Services Provided

(503) 587-3101

* Note: The phone numbers in the chart above are not toll-free for all locations. When you call, you will reach a recorded business message with information about office hours, locations and services provided in that office. If face-to-face assistance is not a priority for you, you may also get help with IRS letters or resolve tax account issues by phone, toll free at 1-800-829-1040 (individuals) or 1-800-829-4933 (businesses). 

For information on where to file your tax return please see Where to File Addresses

The Taxpayer Advocate Service: Call (503) 265-3591 in the Portland area or 1-877-777-4778 elsewhere, or see  Publication 1546, The Taxpayer Advocate Service of the IRS. For further information, see  Tax Topic 104.

Partnerships

IRS and organizations all over the country are partnering to assist taxpayers. Through these partnerships, organizations are also achieving their own goals. These mutually beneficial partnerships are strengthening outreach efforts and bringing education and assistance to millions.

For more information about these programs for individuals and families, contact the Stakeholder Partnerships, Education and Communication Office at:

Internal Revenue Service
100 SW Main Street, MS 0180
Portland, OR 97204

For more information about these programs for businesses, your local Stakeholder Liaison office establishes relationships with organizations representing small business and self-employed taxpayers. They provide information about the policies, practices and procedures the IRS uses to ensure compliance with the tax laws. To establish a relationship with us, use this list to find a contact in your state:

Stakeholder Liaison (SL) Phone Numbers for Organizations Representing Small Businesses and Self-employed Taxpayers.

Page Last Reviewed or Updated: 28-Mar-2014

The State Income Tax Forms 2011

State income tax forms 2011 31. State income tax forms 2011   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. State income tax forms 2011 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. State income tax forms 2011 Figuring Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. State income tax forms 2011 Figuring the Child's Tax (Form 8615, Part III) What's New Net Investment Income Tax. State income tax forms 2011 . State income tax forms 2011  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). State income tax forms 2011 NIIT is a 3. State income tax forms 2011 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. State income tax forms 2011 Use Form 8960, Net Investment Income Tax, to figure this tax. State income tax forms 2011 For more information on NIIT, go to www. State income tax forms 2011 irs. State income tax forms 2011 gov and enter “Net Investment Income Tax” in the search box. State income tax forms 2011 Introduction This chapter discusses the following two rules that may affect the tax on unearned income of certain children. State income tax forms 2011 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. State income tax forms 2011 (See Parent's Election To Report Child's Interest and Dividends , later. State income tax forms 2011 ) 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. State income tax forms 2011 (See Tax for Certain Children Who Have Unearned Income , later. State income tax forms 2011 ) For these rules, the term “child” includes a legally adopted child and a stepchild. State income tax forms 2011 These rules apply whether or not the child is a dependent. State income tax forms 2011 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. State income tax forms 2011 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 . State income tax forms 2011 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. State income tax forms 2011 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . State income tax forms 2011 Parents are married. State income tax forms 2011   If the child's parents file separate returns, use the return of the parent with the greater taxable income. State income tax forms 2011 Parents not living together. State income tax forms 2011   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. State income tax forms 2011 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. State income tax forms 2011   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. State income tax forms 2011 Parents are divorced. State income tax forms 2011   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. State income tax forms 2011 Custodial parent remarried. State income tax forms 2011   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. State income tax forms 2011 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. State income tax forms 2011 Do not use the return of the noncustodial parent. State income tax forms 2011   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. State income tax forms 2011 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. State income tax forms 2011 Parents never married. State income tax forms 2011   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. State income tax forms 2011 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. State income tax forms 2011 Widowed parent remarried. State income tax forms 2011   If a widow or widower remarries, the new spouse is treated as the child's other parent. State income tax forms 2011 The rules explained earlier under Custodial parent remarried apply. State income tax forms 2011 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. State income tax forms 2011 If you do, your child will not have to file a return. State income tax forms 2011 You can make this election only if all the following conditions are met. State income tax forms 2011 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. State income tax forms 2011 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). State income tax forms 2011 The child's gross income was less than $10,000. State income tax forms 2011 The child is required to file a return unless you make this election. State income tax forms 2011 The child does not file a joint return for the year. State income tax forms 2011 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. State income tax forms 2011 No federal income tax was taken out of your child's income under the backup withholding rules. State income tax forms 2011 You are the parent whose return must be used when applying the special tax rules for children. State income tax forms 2011 (See Which Parent's Return To Use , earlier. State income tax forms 2011 ) These conditions are also shown in Figure 31-A. State income tax forms 2011 Certain January 1 birthdays. State income tax forms 2011   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. State income tax forms 2011 You cannot make this election for such a child unless the child was a full-time student. State income tax forms 2011   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. State income tax forms 2011 You cannot make this election for such a child. State income tax forms 2011 Full-time student. State income tax forms 2011   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. State income tax forms 2011 A school includes a technical, trade, or mechanical school. State income tax forms 2011 It does not include an on-the-job training course, correspondence school, or school offering courses only through the Internet. State income tax forms 2011 How to make the election. State income tax forms 2011   Make the election by attaching Form 8814 to your Form 1040. State income tax forms 2011 (If you make this election, you cannot file Form 1040A or Form 1040EZ. State income tax forms 2011 ) Attach a separate Form 8814 for each child for whom you make the election. State income tax forms 2011 You can make the election for one or more children and not for others. State income tax forms 2011 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. State income tax forms 2011 Rate may be higher. State income tax forms 2011   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. State income tax forms 2011 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. State income tax forms 2011 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. State income tax forms 2011 Deductions you cannot take. State income tax forms 2011   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. State income tax forms 2011 The additional standard deduction if the child is blind. State income tax forms 2011 The deduction for a penalty on an early withdrawal of your child's savings. State income tax forms 2011 Itemized deductions (such as your child's investment expenses or charitable contributions). State income tax forms 2011 Reduced deductions or credits. State income tax forms 2011   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return including the following. State income tax forms 2011 Deduction for contributions to a traditional individual retirement arrangement (IRA). State income tax forms 2011 Deduction for student loan interest. State income tax forms 2011 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. State income tax forms 2011 Credit for child and dependent care expenses. State income tax forms 2011 Child tax credit. State income tax forms 2011 Education tax credits. State income tax forms 2011 Earned income credit. State income tax forms 2011 Penalty for underpayment of estimated tax. State income tax forms 2011   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. State income tax forms 2011 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. State income tax forms 2011 See chapter 4 for more information. State income tax forms 2011 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. State income tax forms 2011 Only the amount over $2,000 is added to your income. State income tax forms 2011 The amount over $2,000 is shown on Form 8814, line 6. State income tax forms 2011 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. State income tax forms 2011 Include the amount from Form 8814, line 12, on Form 1040, line 21. State income tax forms 2011 Enter “Form 8814” on the dotted line next to line 21. State income tax forms 2011 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. State income tax forms 2011 Capital gain distributions and qualified dividends. State income tax forms 2011   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. State income tax forms 2011 If your child's dividend income included any qualified dividends, see Qualified dividends under Figuring Child's Income in Publication 929, Part 2. State income tax forms 2011 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. State income tax forms 2011 This tax is added to the tax figured on your income. State income tax forms 2011 This additional tax is the smaller of: 10% × (your child's gross income − $1,000), or $100. State income tax forms 2011 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44. State income tax forms 2011 Check box a on Form 1040, line 44. State income tax forms 2011 Figure 31-A. State income tax forms 2011 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. State income tax forms 2011 Figure 31–A. State income tax forms 2011 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. State income tax forms 2011 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. State income tax forms 2011 Attach the completed form to the child's Form 1040 or Form 1040A. State income tax forms 2011 When Form 8615 must be filed. State income tax forms 2011   Form 8615 must be filed for a child if all of the following statements are true. State income tax forms 2011 The child's investment income was more than $2,000. State income tax forms 2011 The child is required to file a return for 2013. State income tax forms 2011 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. State income tax forms 2011 At least one of the child's parents was alive at the end of 2013. State income tax forms 2011 The child does not file a joint return for 2013. State income tax forms 2011 These conditions are also shown in  Figure 31-B. State income tax forms 2011 Earned income. State income tax forms 2011   Earned income includes salaries, wages, tips, and other payments received for personal services performed. State income tax forms 2011 It does not include unearned income as defined later in this chapter. State income tax forms 2011 Support. State income tax forms 2011   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. State income tax forms 2011 To figure your child's support, count support provided by you, your child, and others. State income tax forms 2011 However, a scholarship received by your child is not considered support if your child is a full-time student. State income tax forms 2011 See chapter 3 for details about support. State income tax forms 2011 Certain January 1 birthdays. State income tax forms 2011   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. State income tax forms 2011 Figure 31-B. State income tax forms 2011 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. State income tax forms 2011 Figure 31-B. State income tax forms 2011 Do You Have To Use Form 8615 To Figure Your Child's Tax?    IF a child was born on. State income tax forms 2011 . State income tax forms 2011 . State income tax forms 2011 THEN, at the end of 2013, the child is considered to be. State income tax forms 2011 . State income tax forms 2011 . State income tax forms 2011 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. State income tax forms 2011 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. State income tax forms 2011  **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. State income tax forms 2011  ***Do not use Form 8615 for this child. State income tax forms 2011 Providing Parental Information (Form 8615, lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. State income tax forms 2011 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. State income tax forms 2011 ) On line C, check the box for the parent's filing status. State income tax forms 2011 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. State income tax forms 2011 Parent with different tax year. State income tax forms 2011   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. State income tax forms 2011 Parent's return information not known timely. State income tax forms 2011   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. State income tax forms 2011   You can use any reasonable estimate. State income tax forms 2011 This includes using information from last year's return. State income tax forms 2011 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. State income tax forms 2011    When you get the correct information, file an amended return on Form 1040X, Amended U. State income tax forms 2011 S. State income tax forms 2011 Individual Income Tax Return. State income tax forms 2011   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. State income tax forms 2011 S. State income tax forms 2011 Individual Income Tax Return. State income tax forms 2011 Extensions are discussed in chapter 1. State income tax forms 2011 Step 1. State income tax forms 2011 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. State income tax forms 2011 To do that, use Form 8615, Part I. State income tax forms 2011 Line 1 (unearned income). State income tax forms 2011   If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. State income tax forms 2011 Adjusted gross income is shown on Form 1040, line 38, or Form 1040A, line 22. State income tax forms 2011 Form 1040EZ cannot be used if Form 8615 must be filed. State income tax forms 2011   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. State income tax forms 2011   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. State income tax forms 2011 Unearned income defined. State income tax forms 2011   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually done. State income tax forms 2011 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. State income tax forms 2011 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). State income tax forms 2011 Nontaxable income. State income tax forms 2011   For this purpose, unearned income includes only amounts the child must include in total income. State income tax forms 2011 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. State income tax forms 2011 Income from property received as a gift. State income tax forms 2011   A child's unearned income includes all income produced by property belonging to the child. State income tax forms 2011 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. State income tax forms 2011   A child's unearned income includes income produced by property given as a gift to the child. State income tax forms 2011 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. State income tax forms 2011 Example. State income tax forms 2011 Amanda Black, age 13, received the following income. State income tax forms 2011 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. State income tax forms 2011 Amanda's unearned income is $2,100. State income tax forms 2011 This is the total of the dividends ($800), taxable interest ($1,200), and net capital gains ($100). State income tax forms 2011 Her wages are earned (not unearned) income because they are received for work actually done. State income tax forms 2011 Her tax-exempt interest is not included because it is nontaxable. State income tax forms 2011 Trust income. State income tax forms 2011   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. State income tax forms 2011   However, for purposes of completing Form 8615, a taxable distribution from a qualified disability trust is considered earned income, not unearned income. State income tax forms 2011 Line 2 (deductions). State income tax forms 2011   If the child does not itemize deductions on Schedule A (Form 1040), enter $2,000 on line 2. State income tax forms 2011   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. State income tax forms 2011 Directly connected. State income tax forms 2011   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. State income tax forms 2011 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. State income tax forms 2011   These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). State income tax forms 2011 Only the amount greater than 2% of the child's adjusted gross income can be deducted. State income tax forms 2011 See chapter 28 for more information. State income tax forms 2011 Example 1. State income tax forms 2011 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. State income tax forms 2011 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. State income tax forms 2011 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. State income tax forms 2011 Example 2. State income tax forms 2011 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. State income tax forms 2011 She has no other income. State income tax forms 2011 She has itemized deductions of $1,050 (net of the 2% limit) that are directly connected with the production of her unearned income. State income tax forms 2011 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). State income tax forms 2011 The amount on line 2 is $2,050. State income tax forms 2011 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. State income tax forms 2011 Line 3. State income tax forms 2011   Subtract line 2 from line 1 and enter the result on this line. State income tax forms 2011 If zero or less, do not complete the rest of the form. State income tax forms 2011 However, you must still attach Form 8615 to the child's tax return. State income tax forms 2011 Figure the tax on the child's taxable income in the normal manner. State income tax forms 2011 Line 4 (child's taxable income). State income tax forms 2011   Enter on line 4 the child's taxable income from Form 1040, line 43, or Form 1040A, line 27. State income tax forms 2011   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. State income tax forms 2011 929. State income tax forms 2011 Line 5 (net unearned income). State income tax forms 2011   A child's net unearned income cannot be more than his or her taxable income. State income tax forms 2011 Enter on Form 8615, line 5, the smaller of line 3 or line 4. State income tax forms 2011 This is the child's net unearned income. State income tax forms 2011   If zero or less, do not complete the rest of the form. State income tax forms 2011 However, you must still attach Form 8615 to the child's tax return. State income tax forms 2011 Figure the tax on the child's taxable income in the normal manner. State income tax forms 2011 Step 2. State income tax forms 2011 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. State income tax forms 2011 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. State income tax forms 2011 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. State income tax forms 2011 For example, do not refigure the medical expense deduction. State income tax forms 2011 Figure the tentative tax on Form 8615, lines 6 through 13. State income tax forms 2011 Note. State income tax forms 2011 If the child or parent has any capital gains or losses, get Publication 929 for help in completing Form 8615, Part II. State income tax forms 2011 Line 6 (parent's taxable income). State income tax forms 2011   Enter on line 6 the parent's taxable income from Form 1040, line 43, Form 1040A, line 27, or Form 1040EZ, line 6. State income tax forms 2011   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. State income tax forms 2011 Line 7 (net unearned income of other children). State income tax forms 2011   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. State income tax forms 2011 Do not include the amount from line 5 of the Form 8615 being completed. State income tax forms 2011 Example. State income tax forms 2011 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. State income tax forms 2011 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. State income tax forms 2011 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). State income tax forms 2011 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). State income tax forms 2011 Other children's information not available. State income tax forms 2011   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. State income tax forms 2011 See Parent's return information not known timely , earlier. State income tax forms 2011 Line 11 (tentative tax). State income tax forms 2011   Subtract line 10 from line 9 and enter the result on this line. State income tax forms 2011 This is the tentative tax. State income tax forms 2011   If line 7 is blank, skip lines 12a and 12b and enter the amount from line 11 on line 13. State income tax forms 2011 Also skip the discussion for lines 12a and 12b that follows. State income tax forms 2011 Lines 12a and 12b (dividing the tentative tax). State income tax forms 2011   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. State income tax forms 2011 This is done on lines 12a, 12b, and 13. State income tax forms 2011 Add the amount on line 7 to the amount on line 5 and enter the total on line 12a. State income tax forms 2011 Divide the amount on line 5 by the amount on line 12a and enter the result, as a decimal, on line 12b. State income tax forms 2011 Example. State income tax forms 2011 In the earlier example under Line 7 (net unearned income of other children), Sharon's Form 8615 shows $1,600 on line 7. State income tax forms 2011 The amount entered on line 12a is $2,400, the total of the amounts on lines 5 and 7 ($800 + $1,600). State income tax forms 2011 The decimal on line 12b is  . State income tax forms 2011 333, figured as follows and rounded to three places. State income tax forms 2011   $800 = . State income tax forms 2011 333     $2,400   Step 3. State income tax forms 2011 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. State income tax forms 2011 This is the child's tax. State income tax forms 2011 It is figured on Form 8615, lines 14 through 18. State income tax forms 2011 Alternative minimum tax. State income tax forms 2011   A child may be subject to alternative minimum tax (AMT) if he or she has certain items given preferential treatment under the tax law. State income tax forms 2011 See Alternative Minimum Tax (AMT) in chapter 30. State income tax forms 2011    For more information on who is liable for AMT and how to figure it, see Form 6251, Alternative Minimum Tax—Individuals. State income tax forms 2011 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. State income tax forms 2011 Prev  Up  Next   Home   More Online Publications