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H&r Block Free Tax File

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H&r Block Free Tax File

H&r block free tax file Publication 516 - Introductory Material Table of Contents Future Developments What's New Reminders IntroductionOrdering forms and publications. H&r block free tax file Tax questions. H&r block free tax file Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 516, such as treaties effective after it was published, go to www. H&r block free tax file irs. H&r block free tax file gov/pub516. H&r block free tax file What's New U. H&r block free tax file S. H&r block free tax file tax treaties and foreign tax laws. H&r block free tax file  This publication has been expanded to cover U. H&r block free tax file S. H&r block free tax file tax treaties and compliance with foreign tax laws. H&r block free tax file Reminders Combat zone participants. H&r block free tax file  If you were a civilian who served in a combat zone or qualified hazardous duty area in support of the U. H&r block free tax file S. H&r block free tax file Armed Forces, you can get certain extensions of deadlines for filing tax returns, paying taxes, filing claims for refund, and doing certain other tax-related acts. H&r block free tax file For details, see Publication 3, Armed Forces' Tax Guide. H&r block free tax file Death due to terrorist or military action. H&r block free tax file  U. H&r block free tax file S. H&r block free tax file income taxes are forgiven for a U. H&r block free tax file S. H&r block free tax file Government civilian employee who dies as a result of wounds or injuries incurred while employed by the U. H&r block free tax file S. H&r block free tax file Government. H&r block free tax file The wounds or injuries must have been caused by terrorist or military action directed against the United States or its allies. H&r block free tax file The taxes are forgiven for the deceased employee's tax years beginning with the year immediately before the year in which the wounds or injury occurred and ending with the year of death. H&r block free tax file If the deceased government employee and the employee's spouse filed a joint return, only the decedent's part of the joint tax liability is forgiven. H&r block free tax file For additional details, see Publication 559, Survivors, Executors, and Administrators. H&r block free tax file Form 8938. H&r block free tax file  If you had foreign financial assets in 2012, you may have to file Form 8938 with your return. H&r block free tax file See Foreign Bank Accounts, later. H&r block free tax file Introduction If you are a U. H&r block free tax file S. H&r block free tax file citizen working for the U. H&r block free tax file S. H&r block free tax file Government, including the foreign service, and you are stationed abroad, your income tax filing requirements are generally the same as those for citizens and residents living in the United States. H&r block free tax file You are taxed on your worldwide income, even though you live and work abroad. H&r block free tax file However, you may receive certain allowances and have certain expenses that you generally do not have while living in the United States. H&r block free tax file This publication explains: Many of the allowances, reimbursements, and property sales you are likely to have, and whether you must report them as income on your tax return, and Many of the expenses you are likely to have, such as moving expenses and foreign taxes, and whether you can deduct them on your tax return. H&r block free tax file U. H&r block free tax file S. H&r block free tax file possessions. H&r block free tax file   This publication does not cover the rules that apply if you are stationed in American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, or Puerto Rico. H&r block free tax file That information is in Publication 570, Tax Guide for Individuals With Income From U. H&r block free tax file S. H&r block free tax file Possessions. H&r block free tax file Comments and suggestions. H&r block free tax file   We welcome your comments about this publication and your suggestions for future editions. H&r block free tax file   You can write to us at the following address: Internal Revenue Service Business Forms and Publications Branch SE:W:CAR:MP:T:B 1111 Constitution Ave. H&r block free tax file NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. H&r block free tax file Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. H&r block free tax file   You can email us at taxforms@irs. H&r block free tax file gov. H&r block free tax file Please put “Publications Comment” on the subject line. H&r block free tax file You can also send us comments from www. H&r block free tax file irs. H&r block free tax file gov/formspubs/. H&r block free tax file Select “Comment on Tax Forms and Publications” under “Information about. H&r block free tax file ”   Although we cannot respond individually to each comment received, we do appreciate your feedback and will consider your comments as we revise our tax products. H&r block free tax file Ordering forms and publications. H&r block free tax file   Visit www. H&r block free tax file irs. H&r block free tax file gov/formspubs/ to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days after your request is received. H&r block free tax file Internal Revenue Service 1201 N. H&r block free tax file Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. H&r block free tax file   If you have a tax question, check the information available on IRS. H&r block free tax file gov or call 1-800-829-1040. H&r block free tax file We cannot answer tax questions sent to either of the above addresses. H&r block free tax file Useful Items - You may want to see: Publication 54 Tax Guide for U. H&r block free tax file S. H&r block free tax file Citizens and Resident Aliens Abroad 463 Travel, Entertainment, Gift, and Car Expenses 514 Foreign Tax Credit for Individuals 519 U. H&r block free tax file S. H&r block free tax file Tax Guide for Aliens 521 Moving Expenses 523 Selling Your Home Form (and Instructions) Schedule A (Form 1040) Itemized Deductions 1116 Foreign Tax Credit 2106 Employee Business Expenses 2106-EZ Unreimbursed Employee Business Expenses 3903 Moving Expenses 4868 Application for Automatic Extension of Time To File U. H&r block free tax file S. H&r block free tax file Individual Income Tax Return 8938 Statement of Specified Foreign Financial Assets TD F 90-22. H&r block free tax file 1 Report of Foreign Bank and Financial Accounts See How To Get Tax Help near the end of this publication, for information about getting these publications and forms. H&r block free tax file Prev  Up  Next   Home   More Online Publications
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Tax Information for Charitable Organizations

Life Cycle of a Public Charity/Private Foundation
Links to helpful information about points of intersection between charitable organizations and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.

Exemption Requirements - 501(c)(3) Organizations
A brief description of the requirements for exemption under IRC Section 501(c)(3).

Application for Recognition of Exemption
Procedures for applying for exemption under Internal Revenue Section 501(c)(3).

Exempt Organizations - Required Filings
Federal annual tax filings for tax-exempt organizations.

Publication 4573, Group Exemptions
A publication describing, in question and answer format, the federal tax rules that apply to group rulings of exemption under Internal Revenue Code section 501.

The Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations
Political Campaign Activity by section 501(c)(3) tax-exempt organizations

Unrelated Business Income Tax
Unrelated business income tax requirements for tax-exempt organizations.

Employment Taxes for Exempt Organizations
Links to information about employment taxes for tax-exempt organizations.

Tax Information for Churches and Religious Organizations
Tax Information for Churches and Religious Orgs

Tax Information for Contributors
Tax Information for Contributors

State Links
A collection of links to State government web sites with useful information for exempt organizations.

Web-Based Mini-Course - Deducting Charitable Contributions
A short course to help charities and contributors understand what is a deductible charitable contribution and what is not. Also covers amount and types of deductible contributions, what records to keep and how to report contributions.

Charitable Contributions - YouTube video
YouTube video on Charitable Contributions.

Page Last Reviewed or Updated: 20-Mar-2014

The H&r Block Free Tax File

H&r block free tax file Publication 929 - Main Content Table of Contents Part 1. H&r block free tax file Rules for All Dependents Filing RequirementsEarned Income Only Unearned Income Only Both Earned and Unearned Income Other Filing Requirements Should a Return Be Filed Even If Not Required? Responsibility for Child's ReturnThird party designee. H&r block free tax file Designated as representative. H&r block free tax file IRS notice. H&r block free tax file Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. H&r block free tax file Part 2. H&r block free tax file Tax on Unearned Income of Certain ChildrenWhich Parent's Return To Use 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. H&r block free tax file Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. H&r block free tax file Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. H&r block free tax file Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. H&r block free tax file Rules for All Dependents This part of the publication discusses the filing requirements for dependents, who is responsible for a child's return, how to figure a dependent's standard deduction and exemption (if any), and whether a dependent can claim exemption from federal income tax withholding. H&r block free tax file Filing Requirements Whether a dependent has to file a return generally depends on the amount of the dependent's earned and unearned income and whether the dependent is married, is age 65 or older, or is blind. H&r block free tax file A dependent may have to file a return even if his or her income is less than the amount that would normally require a return. H&r block free tax file See Other Filing Requirements, later. H&r block free tax file The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. H&r block free tax file  To find out whether a dependent must file, read the section that applies, or use Table 1. H&r block free tax file Earned Income Only A dependent whose gross income is only earned income must file a return if the gross income is more than the amount listed in the following table. H&r block free tax file Marital Status Amount Single   Under 65 and not blind $6,100 Either 65 or older or blind $7,600 65 or older and blind $9,100 Married*   Under 65 and not blind $6,100 Either 65 or older or blind $7,300 65 or older and blind $8,500 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). H&r block free tax file Example. H&r block free tax file William is 16. H&r block free tax file His mother claims an exemption for him on her income tax return. H&r block free tax file He worked part time on weekends during the school year and full time during the summer. H&r block free tax file He earned $7,000 in wages. H&r block free tax file He did not have any unearned income. H&r block free tax file He must file a tax return because he has earned income only and his gross income is more than $6,100. H&r block free tax file If he is blind, he does not have to file a return because his gross income is not more than $7,600. H&r block free tax file Unearned Income Only A dependent whose gross income is only unearned income must file a return if the gross income is more than the amount listed in the following table. H&r block free tax file Marital Status Amount Single   Under 65 and not blind $1,000 Either 65 or older or blind $2,500 65 or older and blind $4,000 Married*   Under 65 and not blind $1,000 Either 65 or older or blind $2,200 65 or older and blind $3,400 *If a dependent's spouse itemizes deductions on a separate return, the dependent must file a return if the dependent has $5 or more of gross income (earned and/or unearned). H&r block free tax file Example. H&r block free tax file Sarah is 18 and single. H&r block free tax file Her parents can claim an exemption for her on their income tax return. H&r block free tax file She received $1,970 of taxable interest and dividend income. H&r block free tax file She did not work during the year. H&r block free tax file She must file a tax return because she has unearned income only and her gross income is more than $1,000. H&r block free tax file If she is blind, she does not have to file a return because she has unearned income only and her gross income is not more than $2,500. H&r block free tax file Election to report child's unearned income on parent's return. H&r block free tax file   A parent of a child under age 19 (or under age 24 if a full-time student) may be able to elect to include the child's interest and dividend income on the parent's return. H&r block free tax file See Parent's Election To Report Child's Interest and Dividends in Part 2. H&r block free tax file If the parent makes this election, the child does not have to file a return. H&r block free tax file Both Earned and Unearned Income A dependent who has both earned and unearned income generally must file a return if the dependent's gross income is more than line 5 of the following worksheet. H&r block free tax file Filing Requirement Worksheet for Most Dependents 1. H&r block free tax file Enter dependent's earned income plus $350     2. H&r block free tax file Minimum amount   $1,000 3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger amount     4. H&r block free tax file Maximum amount   6,100 5. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount     6. H&r block free tax file Enter the dependent's gross income. H&r block free tax file If line 6 is more than line 5, the dependent must file an income tax return. H&r block free tax file If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. H&r block free tax file       Table 1. H&r block free tax file 2013 Filing Requirements for Dependents If your parent (or someone else) can claim you as a dependent, use this table to see if you must file a return. H&r block free tax file   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. H&r block free tax file   Single dependents—Were you either age 65 or older or blind?     No. H&r block free tax file You must file a return if any of the following apply. H&r block free tax file       Your unearned income was over $1,000. H&r block free tax file Your earned income was over $6,100. H&r block free tax file Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. H&r block free tax file         Yes. H&r block free tax file You must file a return if any of the following apply. H&r block free tax file     Your unearned income was over $2,500 ($4,000 if 65 or older and blind), Your earned income was over $7,600 ($9,100 if 65 or older and blind), Your gross income was more than the larger of—       $2,500 ($4,000 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,850 ($3,350 if 65 or older and blind). H&r block free tax file       Married dependents—Were you either age 65 or older or blind?     No. H&r block free tax file You must file a return if any of the following apply. H&r block free tax file       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. H&r block free tax file Your unearned income was over $1,000. H&r block free tax file Your earned income was over $6,100. H&r block free tax file Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. H&r block free tax file       Yes. H&r block free tax file You must file a return if any of the following apply. H&r block free tax file       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. H&r block free tax file Your unearned income was over $2,200 ($3,400 if 65 or older and blind), Your earned income was over $7,300 ($8,500 if 65 or older and blind), Your gross income was more than the larger of—       $2,200 ($3,400 if 65 or older and blind), or Your earned income (up to $5,750) plus $1,550 ($2,750 if 65 or older and blind). H&r block free tax file       Example 1. H&r block free tax file Joe is 20, single, not blind, and a full-time college student. H&r block free tax file He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. H&r block free tax file He received $200 taxable interest income and earned $2,750 from a part-time job. H&r block free tax file He does not have to file a tax return because his gross income of $2,950 ($200 interest plus $2,750 in wages) is not more than $3,100, the amount on line 5 of his filled-in Filing Requirement Worksheet for Most Dependents (shown next). H&r block free tax file Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. H&r block free tax file Enter dependent's earned income plus $350   $ 3,100 2. H&r block free tax file Minimum amount   1,000 3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger amount   3,100 4. H&r block free tax file Maximum amount   6,100 5. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount   3,100 6. H&r block free tax file Enter the dependent's gross income. H&r block free tax file If line 6 is more than line 5, the dependent must file an income tax return. H&r block free tax file If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. H&r block free tax file   $ 2,950   Example 2. H&r block free tax file The facts are the same as in Example 1 except that Joe had $600 taxable interest income. H&r block free tax file He must file a tax return because his gross income of $3,350 ($600 interest plus $2,750 wages) is more than $3,100, the amount on line 5 of his filled-in worksheet (shown next). H&r block free tax file Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. H&r block free tax file Enter dependent's earned income plus $350   $ 3,100 2. H&r block free tax file Minimum amount   1,000 3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger amount   3,100 4. H&r block free tax file Maximum amount   6,100 5. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount   3,100 6. H&r block free tax file Enter the dependent's gross income. H&r block free tax file If line 6 is more than line 5, the dependent must file an income tax return. H&r block free tax file If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 6 is $5 or more. H&r block free tax file   $ 3,350   Age 65 or older or blind. H&r block free tax file A dependent who is age 65 or older or blind must file a return if his or her gross income is more than line 7 of the following worksheet. H&r block free tax file Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. H&r block free tax file Enter dependent's earned income plus $350     2. H&r block free tax file Minimum amount   $1,000 3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger amount     4. H&r block free tax file Maximum amount   6,100 5. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount     6. H&r block free tax file Enter the amount from the following table that applies to the dependent       Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. H&r block free tax file Add lines 5 and 6. H&r block free tax file Enter the total     8. H&r block free tax file Enter the dependent's gross income. H&r block free tax file If line 8 is more than line 7, the dependent must file an income tax return. H&r block free tax file If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more     Example 3. H&r block free tax file The facts are the same as in Example 2 except that Joe is also blind. H&r block free tax file He does not have to file a return because his gross income of $3,350 is not more than $4,600, the amount on line 7 of his filled-in Filing Requirement Worksheet for Dependents Who Are Age 65 or Older or Blind (shown next). H&r block free tax file   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. H&r block free tax file Enter dependent's earned income plus $350   $3,100 2. H&r block free tax file Minimum amount   1,000 3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger amount   3,100 4. H&r block free tax file Maximum amount   6,100 5. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount   3,100 6. H&r block free tax file Enter the amount from the following table that applies to the dependent   1,500   Marital Status Amount     Single         Either 65 or older or blind $1,500       65 or older and blind $3,000     Married         Either 65 or older or blind $1,200       65 or older and blind $2,400   7. H&r block free tax file Add lines 5 and 6. H&r block free tax file Enter the total   4,600 8. H&r block free tax file Enter the dependent's gross income. H&r block free tax file If line 8 is more than line 7, the dependent must file an income tax return. H&r block free tax file If the dependent is married and his or her spouse itemizes deductions on a separate return, the dependent must file an income tax return if line 8 is $5 or more   $3,350 Other Filing Requirements Some dependents may have to file a tax return even if their income is less than the amount that would normally require them to file a return. H&r block free tax file A dependent must file a tax return if he or she owes any other taxes, such as: Social security and Medicare taxes on tips not reported to his or her employer or on wages received from an employer who did not withhold these taxes, Uncollected social security and Medicare or railroad retirement taxes on tips reported to his or her employer or on group-term life insurance, Alternative minimum tax, Additional tax on a health savings account from Form 8889, Part III, Recapture taxes, such as the tax from recapture of an education credit, or Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. H&r block free tax file But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. H&r block free tax file A dependent must also file a tax return if he or she: Had wages of $108. H&r block free tax file 28 or more from a church or qualified church-controlled organization that is exempt from employer social security and Medicare taxes, or Had net earnings from self-employment of at least $400. H&r block free tax file Spouse itemizes. H&r block free tax file   A dependent must file a return if the dependent's spouse itemizes deductions on a separate return and the dependent has $5 or more of gross income (earned and/or unearned). H&r block free tax file Should a Return Be Filed Even If Not Required? Even if a dependent does not meet any of the filing requirements discussed earlier, he or she should file a tax return if either of the following applies. H&r block free tax file Income tax was withheld from his or her income. H&r block free tax file He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. H&r block free tax file See the tax return instructions to find out who qualifies for these credits. H&r block free tax file  By filing a return, the dependent can get a refund. H&r block free tax file Responsibility for Child's Return Generally, a child is responsible for filing his or her own tax return and for paying any tax, penalties, or interest on that return. H&r block free tax file If a child cannot file his or her own return for any reason, such as age, the child's parent, guardian, or other legally responsible person must file it for the child. H&r block free tax file Signing the child's return. H&r block free tax file   If the child cannot sign his or her return, a parent or guardian must sign the child's name followed by the words “By (signature), parent (or guardian) for minor child. H&r block free tax file ” Authority of parent or guardian. H&r block free tax file   A parent or guardian who signs a return on a child's behalf can deal with the IRS on all matters connected with the return. H&r block free tax file   In general, a parent or guardian who does not sign the child's return can only provide information concerning the child's return and pay the child's tax. H&r block free tax file That parent or guardian is not entitled to receive information from the IRS or legally bind the child to a tax liability arising from the return. H&r block free tax file Third party designee. H&r block free tax file   A child's parent or guardian who does not sign the child's return may be authorized, as a third party designee, to discuss the processing of the return with the IRS as well as provide information concerning the return. H&r block free tax file The child or the person signing the return on the child's behalf must check the “Yes” box in the “Third Party Designee” area of the return and name the parent or guardian as the designee. H&r block free tax file   If designated, a parent or guardian can respond to certain IRS notices and receive information about the processing of the return and the status of a refund or payment. H&r block free tax file This designation does not authorize the parent or guardian to receive any refund check, bind the child to any tax liability, or otherwise represent the child before the IRS. H&r block free tax file See the return instructions for more information. H&r block free tax file Designated as representative. H&r block free tax file   A parent or guardian who does not sign the child's return may be designated as the child's representative by the child or the person signing the return on the child's behalf. H&r block free tax file Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. H&r block free tax file See Publication 947, Practice Before the IRS and Power of Attorney, for more information. H&r block free tax file   If designated, a parent or guardian can receive information about the child's return but cannot legally bind the child to a tax liability unless authorized to do so by the law of the state in which the child lives. H&r block free tax file IRS notice. H&r block free tax file   If you or the child receives a notice from the IRS concerning the child's return or tax liability, you should immediately inform the IRS that the notice concerns a child. H&r block free tax file The notice will show who to contact. H&r block free tax file The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. H&r block free tax file Child's earnings. H&r block free tax file   For federal income tax purposes, amounts a child earns by performing services are included in the gross income of the child and not the gross income of the parent. H&r block free tax file This is true even if, under state law, the parent has the right to the earnings and may actually have received them. H&r block free tax file If the child does not pay the tax due on this income, the parent may be liable for the tax. H&r block free tax file Child's expenses. H&r block free tax file   Deductions for payments that are made out of a child's earnings are the child's, even if the payments are made by the parent. H&r block free tax file Example. H&r block free tax file You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. H&r block free tax file You made the payments out of your child's earnings. H&r block free tax file These items can be deducted only on the child's return. H&r block free tax file Standard Deduction The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the larger of: $1,000, or The individual's earned income plus $350, but not more than the regular standard deduction (generally $6,100). H&r block free tax file However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. H&r block free tax file Certain dependents cannot claim any standard deduction. H&r block free tax file See Standard Deduction of Zero , later. H&r block free tax file Worksheet 1. H&r block free tax file   Use Worksheet 1 to figure the dependent's standard deduction. H&r block free tax file Worksheet 1. H&r block free tax file Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. H&r block free tax file If you were 65 or older and/or blind, check the correct number of boxes below. H&r block free tax file Put the total number of boxes checked in box c and go to line 1. H&r block free tax file a. H&r block free tax file You 65 or older   Blind   b. H&r block free tax file Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. H&r block free tax file Total boxes checked         1. H&r block free tax file Enter your earned income (defined below) plus $350. H&r block free tax file If none, enter -0-. H&r block free tax file 1. H&r block free tax file     2. H&r block free tax file Minimum amount. H&r block free tax file   2. H&r block free tax file $1,000   3. H&r block free tax file Compare lines 1 and 2. H&r block free tax file Enter the larger of the two amounts here. H&r block free tax file 3. H&r block free tax file     4. H&r block free tax file Enter on line 4 the amount shown below for your filing status. H&r block free tax file       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. H&r block free tax file     5. H&r block free tax file Standard deduction. H&r block free tax file         a. H&r block free tax file Compare lines 3 and 4. H&r block free tax file Enter the smaller amount here. H&r block free tax file If under 65 and not blind, stop here. H&r block free tax file This is your standard deduction. H&r block free tax file Otherwise, go on to line 5b. H&r block free tax file 5a. H&r block free tax file     b. H&r block free tax file If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. H&r block free tax file Enter the result here. H&r block free tax file 5b. H&r block free tax file     c. H&r block free tax file Add lines 5a and 5b. H&r block free tax file This is your standard deduction for 2013. H&r block free tax file 5c. H&r block free tax file     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. H&r block free tax file It also includes any amount received as a scholarship that you must include in income. H&r block free tax file   Example 1. H&r block free tax file Michael is single, age 15, and not blind. H&r block free tax file His parents can claim him as a dependent on their tax return. H&r block free tax file He has taxable interest income of $800 and wages of $150. H&r block free tax file He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. H&r block free tax file On line 3, he enters $1,000, the larger of $500 or $1,000. H&r block free tax file Michael enters $6,100 on line 4. H&r block free tax file On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. H&r block free tax file His standard deduction is $1,000. H&r block free tax file Example 2. H&r block free tax file Judy, a full-time student, is single, age 22, and not blind. H&r block free tax file Her parents can claim her as a dependent on their tax return. H&r block free tax file She has dividend income of $275 and wages of $2,500. H&r block free tax file She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. H&r block free tax file On line 3, she enters $2,850, the larger of $2,850 or $1,000. H&r block free tax file She enters $6,100 on line 4. H&r block free tax file On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. H&r block free tax file Example 3. H&r block free tax file Amy, who is single, is claimed as a dependent on her parents' tax return. H&r block free tax file She is 18 years old and blind. H&r block free tax file She has taxable interest income of $1,000 and wages of $2,000. H&r block free tax file She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. H&r block free tax file She enters $2,350 (the larger of $2,350 or $1,000) on line 3, $6,100 on line 4, and $2,350 (the smaller of $2,350 or $6,100) on line 5a. H&r block free tax file Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. H&r block free tax file She enters $1,500 (the number in box c times $1,500) on line 5b. H&r block free tax file Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). H&r block free tax file Standard Deduction of Zero The standard deduction for the following dependents is zero. H&r block free tax file A married dependent filing a separate return whose spouse itemizes deductions. H&r block free tax file A dependent who files a return for a period of less than 12 months due to a change in his or her annual accounting period. H&r block free tax file A nonresident or dual-status alien dependent, unless the dependent is married to a U. H&r block free tax file S. H&r block free tax file citizen or resident alien at the end of the year and chooses to be treated as a U. H&r block free tax file S. H&r block free tax file resident for the year. H&r block free tax file See Publication 519, U. H&r block free tax file S. H&r block free tax file Tax Guide for Aliens, for information on making this choice. H&r block free tax file Example. H&r block free tax file Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. H&r block free tax file However, her husband elects to file a separate return and itemize his deductions. H&r block free tax file Because he itemizes, Jennifer's standard deduction on her return is zero. H&r block free tax file She can, however, itemize any of her allowable deductions. H&r block free tax file Dependent's Own Exemption A person who can be claimed as a dependent on another taxpayer's return cannot claim his or her own exemption. H&r block free tax file This is true even if the other taxpayer does not actually claim the exemption. H&r block free tax file Example. H&r block free tax file James and Barbara can claim their child, Ben, as a dependent on their return. H&r block free tax file Ben is a college student who works during the summer and must file a tax return. H&r block free tax file Ben cannot claim his own exemption on his return. H&r block free tax file This is true even if James and Barbara do not claim him as a dependent on their return. H&r block free tax file Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. H&r block free tax file If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. H&r block free tax file The exemption from withholding does not apply to social security and Medicare taxes. H&r block free tax file Conditions for exemption from withholding. H&r block free tax file   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. H&r block free tax file For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. H&r block free tax file For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. H&r block free tax file Dependents. H&r block free tax file   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. H&r block free tax file The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. H&r block free tax file The employee's unearned income will be more than $350. H&r block free tax file Exceptions. H&r block free tax file   An employee may be able to claim exemption from withholding even if the employee is a dependent, if the employee: Is age 65 or older, Is blind, or Will claim on his or her 2014 tax return: Adjustments to income, Tax credits, or Itemized deductions. H&r block free tax file The above exceptions do not apply to supplemental wages greater than $1,000,000. H&r block free tax file For more information, see Exemption From Withholding in chapter 1 of Publication 505. H&r block free tax file Example. H&r block free tax file Guy is 17 and a student. H&r block free tax file During the summer he works part time at a grocery store. H&r block free tax file He expects to earn about $1,200 this year. H&r block free tax file He also worked at the store last summer and received a refund of all his withheld income tax because he did not have a tax liability. H&r block free tax file The only other income he expects during the year is $375 interest on a savings account. H&r block free tax file He expects that his parents will be able to claim him as a dependent on their tax return. H&r block free tax file He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. H&r block free tax file Guy cannot claim exemption from withholding when he fills out Form W-4 because his parents will be able to claim him as a dependent, his gross income will be more than $1,000 (the minimum standard deduction amount) and his unearned income will be more than $350. H&r block free tax file Claiming exemption from withholding. H&r block free tax file    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. H&r block free tax file The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. H&r block free tax file Renewing an exemption from withholding. H&r block free tax file   An exemption from withholding is good for only one year. H&r block free tax file An employee must file a new Form W-4 by February 15 each year to continue the exemption. H&r block free tax file Part 2. H&r block free tax file Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. H&r block free tax file 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. H&r block free tax file (See Parent's Election To Report Child's Interest and Dividends , later. H&r block free tax file ) 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. H&r block free tax file (See Tax for Certain Children Who Have Unearned Income , later. H&r block free tax file ) For these rules, the term “child” includes a legally adopted child and a stepchild. H&r block free tax file These rules apply whether or not the child is a dependent. H&r block free tax file These rules do not apply if neither of the child's parents were living at the end of the year. H&r block free tax file 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. H&r block free tax file 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 . H&r block free tax file 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. H&r block free tax file Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . H&r block free tax file Parents are married. H&r block free tax file   If the child's parents file separate returns, use the return of the parent with the greater taxable income. H&r block free tax file Parents not living together. H&r block free tax file   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. H&r block free tax file If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. H&r block free tax file   For an explanation of when a married person living apart from his or her spouse is considered unmarried, see Head of Household in Publication 501. H&r block free tax file Parents are divorced. H&r block free tax file   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. H&r block free tax file Custodial parent remarried. H&r block free tax file   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. H&r block free tax file Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. H&r block free tax file Do not use the return of the noncustodial parent. H&r block free tax file   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. H&r block free tax file If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. H&r block free tax file Parents never married. H&r block free tax file   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. H&r block free tax file If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. H&r block free tax file Widowed parent remarried. H&r block free tax file   If a widow or widower remarries, the new spouse is treated as the child's other parent. H&r block free tax file The rules explained earlier under Custodial parent remarried apply. H&r block free tax file 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. H&r block free tax file If you do, your child will not have to file a return. H&r block free tax file You can make this election only if all the following conditions are met. H&r block free tax file Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. H&r block free tax file Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). H&r block free tax file The child's gross income was less than $10,000. H&r block free tax file The child is required to file a return unless you make this election. H&r block free tax file The child does not file a joint return for the year. H&r block free tax file 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. H&r block free tax file No federal income tax was withheld from your child's income under the backup withholding rules. H&r block free tax file You are the parent whose return must be used when applying the special tax rules for children. H&r block free tax file (See Which Parent's Return To Use , earlier. H&r block free tax file ) These conditions are also shown in Figure 1. H&r block free tax file Certain January 1 birthdays. H&r block free tax file   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. H&r block free tax file You cannot make this election for such a child unless the child was a full-time student. H&r block free tax file   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. H&r block free tax file You cannot make this election for such a child. H&r block free tax file How to make the election. H&r block free tax file    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. H&r block free tax file (If you make this election, you cannot file Form 1040A or Form 1040EZ. H&r block free tax file ) Attach a separate Form 8814 for each child for whom you make the election. H&r block free tax file You can make the election for one or more children and not for others. H&r block free tax file Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. H&r block free tax file Rate may be higher. H&r block free tax file   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. H&r block free tax file This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. H&r block free tax file 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. H&r block free tax file Deductions you cannot take. H&r block free tax file   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. H&r block free tax file The additional standard deduction if the child is blind. H&r block free tax file The deduction for a penalty on an early withdrawal of your child's savings. H&r block free tax file Itemized deductions (such as your child's investment expenses or charitable contributions). H&r block free tax file Figure 1. H&r block free tax file Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. H&r block free tax file Figure 1. H&r block free tax file Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. H&r block free tax file   If you use Form 8814, your child's unearned income is considered your unearned income. H&r block free tax file To figure the limit on your deductible investment interest, add the child's unearned income to yours. H&r block free tax file However, if your child received qualified dividends, capital gain distributions, or Alaska Permanent Fund dividends, see chapter 3 of Publication 550 for information about how to figure the limit. H&r block free tax file Alternative minimum tax. H&r block free tax file    If your child received tax-exempt interest (or exempt-interest dividends paid by a regulated investment company) from certain private activity bonds, you must determine if that interest is a tax preference item for alternative minimum tax (AMT) purposes. H&r block free tax file If it is, you must include it with your own tax preference items when figuring your AMT. H&r block free tax file See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. H&r block free tax file Reduced deductions or credits. H&r block free tax file   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. H&r block free tax file Deduction for contributions to a traditional individual retirement arrangement (IRA). H&r block free tax file Deduction for student loan interest. H&r block free tax file Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. H&r block free tax file Credit for child and dependent care expenses. H&r block free tax file Child tax credit. H&r block free tax file Education tax credits. H&r block free tax file Earned income credit. H&r block free tax file Penalty for underpayment of estimated tax. H&r block free tax file   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. H&r block free tax file 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. H&r block free tax file Get Publication 505 for more information. H&r block free tax file Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. H&r block free tax file Only the amount over $2,000 is added to your income. H&r block free tax file The amount over $2,000 is shown on Form 8814, line 6. H&r block free tax file Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. H&r block free tax file Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. H&r block free tax file If you file more than one Form 8814, include the total amounts from line 12 of all your Forms 8814 on Form 1040 or Form 1040NR, line 21. H&r block free tax file On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. H&r block free tax file Note. H&r block free tax file The tax on the first $2,000 is figured on Form 8814, Part II. H&r block free tax file See Figuring Additional Tax , later. H&r block free tax file Qualified dividends. H&r block free tax file   Enter on Form 8814, line 2a, any ordinary dividends your child received. H&r block free tax file This amount may include qualified dividends. H&r block free tax file Qualified dividends are those dividends reported on Form 1040, line 9b, or Form 1040NR, line 10b, and are eligible for lower tax rates that apply to a net capital gain. H&r block free tax file For detailed information about qualified dividends, see Publication 550. H&r block free tax file   If your child received qualified dividends, the amount of these dividends that is added to your income must be reported on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. H&r block free tax file You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. H&r block free tax file   Enter the child's qualified dividends on Form 8814, line 2b. H&r block free tax file But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. H&r block free tax file Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. H&r block free tax file (The amount on Form 8814, line 9, may be less than the amount on Form 8814, line 2b, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. H&r block free tax file ) Capital gain distributions. H&r block free tax file   Enter on Form 8814, line 3, any capital gain distributions your child received. H&r block free tax file The amount of these distributions that is added to your income must be reported on Schedule D (Form 1040), line 13, or, if you are not required to file Schedule D, on Form 1040, line 13, or Form 1040NR, line 14. H&r block free tax file You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. H&r block free tax file   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. H&r block free tax file (The amount on Form 8814, line 10, may be less than the amount on Form 8814, line 3, because lines 7 through 12 of the form divide the $2,000 base amount on Form 8814, line 5, between the child's qualified dividends, capital gain distributions, and other interest and dividend income, reducing each of those amounts. H&r block free tax file ) Collectibles (28% rate) gain. H&r block free tax file    If any of the child's capital gain distributions are reported on Form 1099-DIV as collectibles (28% rate) gain, you must determine how much to also include on line 4 of the 28% Rate Gain Worksheet, in the instructions for Schedule D, line 18. H&r block free tax file Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. H&r block free tax file The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. H&r block free tax file The denominator is the child's total capital gain distribution. H&r block free tax file Enter the result on line 4 of the 28% Rate Gain Worksheet. H&r block free tax file Unrecaptured section 1250 gain. H&r block free tax file   If any of the child's capital gain distributions are reported on Form 1099-DIV as unrecaptured section 1250 gain, you must determine how much to include on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the instructions for Schedule D, line 19. H&r block free tax file Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. H&r block free tax file The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. H&r block free tax file The denominator is the child's total capital gain distribution. H&r block free tax file Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. H&r block free tax file Section 1202 gain. H&r block free tax file   If any of the child's capital gain distributions are reported as section 1202 gain (gain on qualified small business stock) on Form 1099-DIV, part or all of that gain may be eligible for the section 1202 exclusion. H&r block free tax file (For information about the exclusion, see chapter 4 of Publication 550. H&r block free tax file ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. H&r block free tax file The numerator is the part of the child's total capital gain distribution that is section 1202 gain. H&r block free tax file The denominator is the child's total capital gain distribution. H&r block free tax file Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. H&r block free tax file In some cases, the exclusion is more than 50%. H&r block free tax file See the instructions for Schedule D for details and information on how to report the exclusion amount. H&r block free tax file Example. H&r block free tax file Fred is 6 years old. H&r block free tax file In 2013, he received dividend income of $2,100, which included $1,575 of ordinary dividends and a $525 capital gain distribution from a mutual fund. H&r block free tax file (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. H&r block free tax file ) All of the ordinary dividends are qualified dividends. H&r block free tax file He has no other income and is not subject to backup withholding. H&r block free tax file No estimated tax payments were made under his name and social security number. H&r block free tax file Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. H&r block free tax file They figure the amount to report on Form 1040, lines 9a and 9b, the amount to report on their Schedule D, line 13, and the amount to report on Form 1040, line 21, as follows. H&r block free tax file They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. H&r block free tax file They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. H&r block free tax file They enter the amount of Fred's capital gain distributions, $525, on line 3. H&r block free tax file Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. H&r block free tax file They subtract the base amount on line 5, $2,000, from the amount on line 4, $2,100, and enter the result, $100, on line 6. H&r block free tax file This is the total amount from Form 8814 to be reported on their return. H&r block free tax file Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. H&r block free tax file They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. H&r block free tax file They enter the result, . H&r block free tax file 75, on line 7. H&r block free tax file They divide the amount on line 3, $525, by the amount on line 4, $2,100. H&r block free tax file They enter the result, . H&r block free tax file 25, on line 8. H&r block free tax file They multiply the amount on line 6, $100, by the decimal on line 7, . H&r block free tax file 75, and enter the result, $75, on line 9. H&r block free tax file They multiply the amount on line 6, $100, by the decimal on line 8, . H&r block free tax file 25, and enter the result, $25, on line 10. H&r block free tax file They include the amount from line 9, $75, on lines 9a and 9b of their Form 1040 and enter “Form 8814 – $75” on the dotted lines next to lines 9a and 9b. H&r block free tax file They include the amount from line 10, $25, on line 13 of their Schedule D (Form 1040) and enter “Form 8814 – $25” on the dotted line next to Schedule D, line 13. H&r block free tax file They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. H&r block free tax file Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. H&r block free tax file 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. H&r block free tax file This tax is added to the tax figured on your income. H&r block free tax file This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. H&r block free tax file Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. H&r block free tax file Check box a on Form 1040, line 44, or Form 1040NR, line 42. H&r block free tax file 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. H&r block free tax file 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. H&r block free tax file Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. H&r block free tax file When Form 8615 must be filed. H&r block free tax file   Form 8615 must be filed for a child if all of the following statements are true. H&r block free tax file The child's unearned income was more than $2,000. H&r block free tax file The child is required to file a return for 2013. H&r block free tax file 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. H&r block free tax file At least one of the child's parents was alive at the end of 2013. H&r block free tax file The child does not file a joint return for 2013. H&r block free tax file These conditions are also shown in Figure 2. H&r block free tax file Certain January 1 birthdays. H&r block free tax file   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. H&r block free tax file IF a child was born on. H&r block free tax file . H&r block free tax file . H&r block free tax file THEN, at the end of 2013, the child is considered to be. H&r block free tax file . H&r block free tax file . H&r block free tax file January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. H&r block free tax file The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. H&r block free tax file  **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. H&r block free tax file  ***Do not use Form 8615 for this child. H&r block free tax file Figure 2. H&r block free tax file Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. H&r block free tax file Figure 2. H&r block free tax file Do You Have To Use Form 8615 To Figure Your Child's Tax? Providing Parental Information (Form 8615, Lines A–C) On Form 8615, lines A and B, enter the parent's name and social security number. H&r block free tax file (If the parents filed a joint return, enter the name and social security number listed first on the joint return. H&r block free tax file ) On line C, check the box for the parent's filing status. H&r block free tax file See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. H&r block free tax file Parent with different tax year. H&r block free tax file   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. H&r block free tax file Example. H&r block free tax file Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). H&r block free tax file Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). H&r block free tax file Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. H&r block free tax file Parent's return information not known timely. H&r block free tax file   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. H&r block free tax file   You can use any reasonable estimate. H&r block free tax file This includes using information from last year's return. H&r block free tax file If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. H&r block free tax file   When you get the correct information, file an amended return on Form 1040X, Amended U. H&r block free tax file S. H&r block free tax file Individual Income Tax Return. H&r block free tax file Extension of time to file. H&r block free tax file   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. H&r block free tax file S. H&r block free tax file Individual Income Tax Return. H&r block free tax file See the instructions for Form 4868 for details. H&r block free tax file    An extension of time to file is not an extension of time to pay. H&r block free tax file You must make an accurate estimate of the tax for 2013. H&r block free tax file If you do not pay the full amount due by the regular due date, the child will owe interest and may also be charged penalties. H&r block free tax file See Form 4868 and its instructions. H&r block free tax file Parent's return information not available. H&r block free tax file   If a child cannot get the required information about his or her parent's tax return, the child (or the child's legal representative) can request the necessary information from the Internal Revenue Service (IRS). H&r block free tax file How to request. H&r block free tax file   After the end of the tax year, send a signed, written request for the information to the Internal Revenue Service Center where the parent's return will be filed. H&r block free tax file (The IRS cannot process a request received before the end of the tax year. H&r block free tax file )    You should also consider getting an extension of time to file the child's return, because there may be a delay in getting the requested information. H&r block free tax file   The request must contain all of the following. H&r block free tax file A statement that you are making the request to comply with section 1(g) of the Internal Revenue Code and that you have tried to get the information from the parent. H&r block free tax file Proof of the child's age (for example, a copy of the child's birth certificate). H&r block free tax file Evidence the child has more than $2,000 of unearned income (for example, a copy of the child's prior year tax return or copies of Forms 1099 for the current year). H&r block free tax file The name, address, social security number (if known), and filing status (if known) of the parent whose information is to be shown on Form 8615. H&r block free tax file    A child's legal representative making the request should include a copy of his or her Power of Attorney, such as Form 2848, or proof of legal guardianship. H&r block free tax file Step 1. H&r block free tax file 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. H&r block free tax file To do that, use Form 8615, Part I. H&r block free tax file Line 1 (Unearned Income) If the child had no earned income, enter on this line the adjusted gross income shown on the child's return. H&r block free tax file Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. H&r block free tax file Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. H&r block free tax file 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. H&r block free tax file However, use the following worksheet if: the child has excluded any foreign earned income, deducted a loss from self-employment, or has a net operating loss from another year. H&r block free tax file Alternate Worksheet for Form 8615, Line 1 A. H&r block free tax file Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. H&r block free tax file Enter the total of any net loss  from self-employment, any net operating loss deduction, any foreign earned income exclusion, and any foreign housing exclusion from the child's Form 1040 or Form 1040NR. H&r block free tax file Enter this total as a positive number (greater than zero)   C. H&r block free tax file Add line A and line B and  enter the total   D. H&r block free tax file Enter the child's earned income plus any amount from the child's Form 1040, line 30, or the child's Form 1040NR, line 30     Generally, the child's earned income is the total of the amounts reported on Form 1040, lines 7, 12, and 18 (if line 12 or 18 is a loss, use zero) or Form 1040NR, lines 8, 13, and 19 (if line 13 or 19 is a loss, use zero)   E. H&r block free tax file Subtract line D from line C. H&r block free tax file Enter the result here and on Form 8615, line 1   Unearned income defined. H&r block free tax file   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. H&r block free tax file It includes taxable interest, dividends, capital gains (including capital gain distributions), the taxable part of social security and pension payments, certain distributions from trusts, and unemployment compensation. H&r block free tax file 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). H&r block free tax file Nontaxable income. H&r block free tax file   For this purpose, unearned income includes only amounts the child must include in gross income. H&r block free tax file Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. H&r block free tax file Capital loss. H&r block free tax file   A child's capital losses are taken into account in figuring the child's unearned income. H&r block free tax file Capital losses are first applied against capital gains. H&r block free tax file If the capital losses are more than the capital gains, the difference (up to $3,000) is subtracted from the child's interest, dividends, and other unearned income. H&r block free tax file Any difference over $3,000 is carried to the next year. H&r block free tax file Income from property received as a gift. H&r block free tax file   A child's unearned income includes all income produced by property belonging to the child. H&r block free tax file 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. H&r block free tax file   A child's unearned income includes income produced by property given as a gift to the child. H&r block free tax file This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. H&r block free tax file Example. H&r block free tax file Amanda Black, age 13, received the following income. H&r block free tax file Dividends—$800 Wages—$2,100 Taxable interest—$1,200 Tax-exempt interest—$100 Capital gains—$300 Capital losses—($200) The dividends were qualified dividends on stock given to her by her grandparents. H&r block free tax file Amanda's unearned income is $2,100. H&r block free tax file This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). H&r block free tax file Her wages are earned (not unearned) income because they are received for work actually performed. H&r block free tax file Her tax-exempt interest is not included because it is nontaxable. H&r block free tax file Trust income. H&r block free tax file   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. H&r block free tax file   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. H&r block free tax file See the Form 8615 instructions for details. H&r block free tax file Adjustment to income. H&r block free tax file   In figuring the amount to enter on line 1, the child's unearned income is reduced by any penalty on the early withdrawal of savings. H&r block free tax file Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. H&r block free tax file If the child itemizes 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 (or Schedule A (Form 1040NR), line 15), that are directly connected with the production of the unearned income entered on line 1, or $2,000. H&r block free tax file Directly connected. H&r block free tax file   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. H&r block free tax file These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. H&r block free tax file    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). H&r block free tax file Only the amount greater than 2% of the child's adjusted gross income can be deducted. H&r block free tax file See Publication 529, Miscellaneous Deductions, for more information. H&r block free tax file Example 1. H&r block free tax file 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%-of-adjusted-gross-income limit) that are directly connected with his unearned income. H&r block free tax file His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. H&r block free tax file 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. H&r block free tax file Example 2. H&r block free tax file Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. H&r block free tax file She has no other income. H&r block free tax file She has itemized deductions of $1,050 (net of the 2%-of-adjusted-gross-income limit) that are directly connected with the production of her unearned income. H&r block free tax file Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). H&r block free tax file The amount on line 2 is $2,050. H&r block free tax file This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. H&r block free tax file Line 3 Subtract line 2 from line 1 and enter the result on this line. H&r block free tax file If zero or less, do not complete the rest of the form. H&r block free tax file However, you must still attach Form 8615 to the child's tax return. H&r block free tax file Figure the tax on the child's taxable income in the normal manner. H&r block free tax file Line 4 (Child's Taxable Income) Enter on line 4 the child's taxable income from Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. H&r block free tax file Child files Form 2555 or 2555-EZ. H&r block free tax file   If the child files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet (in the Form 1040 instructions) is used to figure the child's tax. H&r block free tax file Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. H&r block free tax file Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. H&r block free tax file Enter on Form 8615, line 5, the smaller of line 3 or line 4. H&r block free tax file This is the child's net unearned income. H&r block free tax file If zero or less, do not complete the rest of the form. H&r block free tax file However, you must still attach Form 8615 to the child's tax return. H&r block free tax file Figure the tax on the child's taxable income in the normal manner. H&r block free tax file Step 2. H&r block free tax file Figuring a 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. H&r block free tax file 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. H&r block free tax file 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. H&r block free tax file For example, do not refigure the medical expense deduction. H&r block free tax file Figure the tentative tax on Form 8615, lines 6 through 13. H&r block free tax file Line 6 (Parent's Taxable Income) Enter on line 6 the amount from the parent's Form 1040, line 43; Form 1040A, line 27; Form 1040EZ, line 6; Form 1040NR, line 41; or Form 1040NR-EZ, line 14. H&r block free tax file If the parent's taxable income is zero or less, enter zero on line 6. H&r block free tax file Parent files Form 2555 or 2555-EZ. H&r block free tax file   If the parent files Form 2555 or 2555-EZ to claim the foreign earned income exclusion, housing exclusion, or housing deduction, the Foreign Earned Income Tax Worksheet in the Form 1040 instructions is used to figure the parent's tax. H&r block free tax file Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the parent's taxable income, on line 6 of Form 8615. H&r block free tax file Line 7 (Net Unearned Income of Other Children) 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. H&r block free tax file Do not include the amount from line 5 of the Form 8615 being completed. H&r block free tax file (The term “other child” means any other child whose Form 8615 uses the tax information of the parent identified on Lines A and B of Form 8615. H&r block free tax file ) Example. H&r block free tax file Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. H&r block free tax file 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. H&r block free tax file Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). H&r block free tax file Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). H&r block free tax file Other children's information not available. H&r block free tax file   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. H&r block free tax file Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . H&r block free tax file Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. H&r block free tax file You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. H&r block free tax file Net capital gain. H&r block free tax file   Net capital gain is the smaller of the gain, if any, on Schedule D (Form 1040), line 15, or the gain, if any, on Schedule D, line 16. H&r block free tax file If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. H&r block free tax file Qualified dividends. H&r block free tax file   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. H&r block free tax file Net capital gain and qualified dividends on line 8. H&r block free tax file   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. H&r block free tax file   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. H&r block free tax file   If the child, parent, or any other child has net capital gain, figure the amount of net capital gain included on line 8 by adding together the net capital gain amounts included on lines 5, 6, and 7 of Form 8615. H&r block free tax file   If the child, parent, or any other child has qualified dividends, figure the amount of qualified dividends included on line 8 by adding together the qualified dividend amounts included on lines 5, 6, and 7. H&r block free tax file   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. H&r block free tax file See the instructions for Form 8615 for more details. H&r block free tax file Note. H&r block free tax file The amount of any net capital gain or qualified dividends is not separately reported on line 8. H&r block free tax file It is  needed, however, when figuring the tax on line 9. H&r block free tax file Line 9 (Tax on Parent's Taxable Income Plus Children's Net Unearned Income) Figure the tax on the amount on line 8 using the Tax Table, the Tax Computation Worksheet, the Qualified Dividends and Capital Gain Tax Worksheet (in the Form 1040, 1040A, or 1040NR instructions), the Schedule D Tax Worksheet (in the Schedule D instructions), or Schedule J (Form 1040), as follows. H&r block free tax file If line 8 does not include any net capital gain or qualified dividends, use the Tax Table or Tax Computation Worksheet to figure this tax. H&r block free tax file But if Schedule J, Income Averaging for Farmers and Fishermen, is used to figure the tax on the parent's return, use it to figure this tax. H&r block free tax file If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. H&r block free tax file For details, see the instructions for Form 8615, line 9. H&r block free tax file However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. H&r block free tax file But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. H&r block free tax file Child files Form 2555 or 2555-EZ. H&r block free tax file   If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555 or 2555-EZ, use Using the Schedule D Tax Worksheet for line 9 tax, next, to figure the line 9 tax. H&r block free tax file Using the Schedule D Tax Worksheet for line 9 tax. H&r block free tax file    Use the Schedule D Tax Worksheet (in the Schedule D instructions) to figure the line 9 tax on Form 8615 if the child, parent, or any other child has unrecaptured section 1250 gain or 28% rate gain. H&r block free tax file If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, parent, or any other child. H&r block free tax file Then figure the line 9 tax using another Schedule D Tax Worksheet. H&r block free tax file (Do not attach this Schedule D Tax Worksheet to the child's return. H&r block free tax file )   Complete this Schedule D Tax Worksheet as follows. H&r block free tax file On line 1, enter the amount from Form 8615, line 8. H&r block free tax file On line 2, enter the qualified dividends included on Form 8615, line 8. H&r block free tax file (See the earlier discussion for line 8. H&r block free tax file ) On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, parent, or any other child. H&r block free tax file On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, parent, or any other child. H&r block free tax file If applicable, include instead the smaller amount entered on the dotted line next to line 4e. H&r block free tax file On lines 5 and 6, follow the worksheet instructions. H&r block free tax file On line 7, enter the net capital gain included on Form 8615, line 8. H&r block free tax file (See the earlier discussion for line 8. H&r block free tax file ) On lines 8 through 10, follow the worksheet instructions. H&r block free tax file On line 11, enter zero if neither the child, nor the parent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). H&r block free tax file Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain included in the net capital gain on line 8 of Form 8615. H&r block free tax file Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). H&r block free tax file If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. H&r block free tax file Otherwise, skip steps 10, 11, and 12 below, and go to step 13. H&r block free tax file Determine whether there is a line 8 capital gain excess as follows. H&r block free tax file Add the amounts on line 2 of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. H&r block free tax file (But for each child do not add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child's taxable income on Form 1040, line 43; Form 1040A, line 27; or Form 1040NR, line 41. H&r block free tax file ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. H&r block free tax file Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. H&r block free tax file If the result is more than zero, that amount is the line 8 capital gain excess. H&r block free tax file If the result is zero or less, there is no line 8 capital gain excess. H&r block free tax file If there is no line 8 capital gain excess, skip step 12 below and go to step 13. H&r block free tax file If there is a line 8 capital gain excess, complete a second Schedule D Tax Worksheet as instructed above and in step 13, but in its entirety and with the following additional modifications. H&r block free tax file (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. H&r block free tax file ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. H&r block free tax file Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 capital gain excess not used in (a) above. H&r block free tax file If the child, parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet – 28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Worksheet. H&r block free tax file If the child, parent, or any other child has unrecaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Worksheet – Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in 12(c), and refigure the amount on line 11 of this Schedule D Tax Worksheet. H&r block free tax file Complete lines 12 through 45 following the worksheet instructions. H&r block free tax file Use the parent's filing status to complete lines 15, 42, and 44. H&r block free tax file Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line