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Turbo Tax 2007

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Turbo Tax 2007

Turbo tax 2007 Publication 555 - Introductory Material Table of Contents Future Developments What's New Important Reminder IntroductionOrdering forms and publications. Turbo tax 2007 Tax questions. Turbo tax 2007 Useful Items - You may want to see: Future Developments For the latest information about developments related to Publication 555, such as legislation enacted after it was published, go to www. Turbo tax 2007 irs. Turbo tax 2007 gov/pub555. Turbo tax 2007 What's New Same-sex marriages. Turbo tax 2007  For federal tax purposes, individuals of the same sex are married if they were lawfully married in a state (or foreign country) whose laws authorize the marriage of two individuals of the same sex, even if the state (or foreign country) in which they now live does not recognize same-sex marriage. Turbo tax 2007 The term "spouse" includes an individual married to a person of the same sex if the couple is lawfully married under state (or foreign) law. Turbo tax 2007 However, individuals who have entered into a registered domestic partnership, civil union, or other similar relationship that is not called a marriage under state (or foreign) law are not married for federal tax purposes. Turbo tax 2007 The word “state” as used here includes the District of Columbia, Puerto Rico, and U. Turbo tax 2007 S. Turbo tax 2007 territories and possessions. Turbo tax 2007 It means any domestic jurisdiction that has the legal authority to sanction marriages. Turbo tax 2007 The term “foreign country” means any foreign jurisdiction that has the legal authority to sanction marriages. Turbo tax 2007 If individuals of the same sex are married, they generally must use the married filing jointly or married filing separately filing status. Turbo tax 2007 However, if they did not live together during the last 6 months of the year, one or both of them may be able to use the head of household filing status. Turbo tax 2007 For details, see Publication 501, Exemptions, Standard Deduction, and Filing Information. Turbo tax 2007 Also see Revenue Ruling 2013-17 and Answers to Frequently Asked Questions for Individuals of the Same Sex Who Are Married Under State Law on IRS. Turbo tax 2007 gov. Turbo tax 2007 Important Reminder Photographs of missing children. Turbo tax 2007  The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Turbo tax 2007 Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. Turbo tax 2007 You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child. Turbo tax 2007 Introduction This publication is for married taxpayers who are domiciled in one of the following community property states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin. Turbo tax 2007 This publication does not address the federal tax treatment of income or property subject to the “community property” election under Alaska state laws. Turbo tax 2007 Community property laws affect how you figure your income on your federal income tax return if you are married, live in a community property state or country, and file separate returns. Turbo tax 2007 If you are married, your tax usually will be less if you file married filing jointly than if you file married filing separately. Turbo tax 2007 However, sometimes it can be to your advantage to file separate returns. Turbo tax 2007 If you and your spouse file separate returns, you have to determine your community income and your separate income. Turbo tax 2007 Community property laws also affect your basis in property you inherit from a married person who lived in a community property state. Turbo tax 2007 See Death of spouse , later. Turbo tax 2007 Registered domestic partners. Turbo tax 2007    This publication is also for registered domestic partners who are domiciled in Nevada, Washington, or California. Turbo tax 2007 Registered domestic partners in Nevada, Washington, or California generally must follow state community property laws and report half the combined community income of the individual and his or her registered domestic partner. Turbo tax 2007   Registered domestic partners are not married for federal tax purposes. Turbo tax 2007 They can use the single filing status, or if they qualify, the head of household filing status. Turbo tax 2007    You can find answers to frequently asked questions by going to www. Turbo tax 2007 irs. Turbo tax 2007 gov/pub555 and clicking on Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions under Other Items You May Find Useful. Turbo tax 2007 Comments and suggestions. Turbo tax 2007    We welcome your comments about this publication and your suggestions for future editions. Turbo tax 2007   You can write to us at the following address: Internal Revenue Service Tax Forms and Publications Division 1111 Constitution Ave. Turbo tax 2007 NW, IR-6526 Washington, DC 20224   We respond to many letters by telephone. Turbo tax 2007 Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence. Turbo tax 2007   You can send your comments from www. Turbo tax 2007 irs. Turbo tax 2007 gov/formspubs. Turbo tax 2007 Click on “More Information” and then on “Give us feedback on forms and publications. Turbo tax 2007 ”   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. Turbo tax 2007 Ordering forms and publications. Turbo tax 2007    Visit www. Turbo tax 2007 irs. Turbo tax 2007 gov/formspubs to download forms and publications, call 1-800-TAX-FORM (1-800-829-3676), or write to the address below and receive a response within 10 days after your request is received. Turbo tax 2007 Internal Revenue Service 1201 N. Turbo tax 2007 Mitsubishi Motorway Bloomington, IL 61705-6613 Tax questions. Turbo tax 2007    If you have a tax question, check the information available on IRS. Turbo tax 2007 gov or call 1-800-829-1040. Turbo tax 2007 We cannot answer tax questions sent to either of the above addresses. Turbo tax 2007 Useful Items - You may want to see: Publication 504 Divorced or Separated Individuals 505 Tax Withholding and Estimated Tax 971 Innocent Spouse Relief Form (and Instructions) 8857 Request for Innocent Spouse Relief 8958 Allocation of Tax Amounts Between Certain Individuals in Community Property States  See How To Get Tax Help near the end of this publication for information about getting these publications and forms. Turbo tax 2007 Prev  Up  Next   Home   More Online Publications
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The Turbo Tax 2007

Turbo tax 2007 Publication 929 - Main Content Table of Contents Part 1. Turbo tax 2007 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. Turbo tax 2007 Designated as representative. Turbo tax 2007 IRS notice. Turbo tax 2007 Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Turbo tax 2007 Part 2. Turbo tax 2007 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. Turbo tax 2007 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Turbo tax 2007 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Turbo tax 2007 Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 See Other Filing Requirements, later. Turbo tax 2007 The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Turbo tax 2007  To find out whether a dependent must file, read the section that applies, or use Table 1. Turbo tax 2007 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. Turbo tax 2007 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). Turbo tax 2007 Example. Turbo tax 2007 William is 16. Turbo tax 2007 His mother claims an exemption for him on her income tax return. Turbo tax 2007 He worked part time on weekends during the school year and full time during the summer. Turbo tax 2007 He earned $7,000 in wages. Turbo tax 2007 He did not have any unearned income. Turbo tax 2007 He must file a tax return because he has earned income only and his gross income is more than $6,100. Turbo tax 2007 If he is blind, he does not have to file a return because his gross income is not more than $7,600. Turbo tax 2007 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. Turbo tax 2007 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). Turbo tax 2007 Example. Turbo tax 2007 Sarah is 18 and single. Turbo tax 2007 Her parents can claim an exemption for her on their income tax return. Turbo tax 2007 She received $1,970 of taxable interest and dividend income. Turbo tax 2007 She did not work during the year. Turbo tax 2007 She must file a tax return because she has unearned income only and her gross income is more than $1,000. Turbo tax 2007 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. Turbo tax 2007 Election to report child's unearned income on parent's return. Turbo tax 2007   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. Turbo tax 2007 See Parent's Election To Report Child's Interest and Dividends in Part 2. Turbo tax 2007 If the parent makes this election, the child does not have to file a return. Turbo tax 2007 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. Turbo tax 2007 Filing Requirement Worksheet for Most Dependents 1. Turbo tax 2007 Enter dependent's earned income plus $350     2. Turbo tax 2007 Minimum amount   $1,000 3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger amount     4. Turbo tax 2007 Maximum amount   6,100 5. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount     6. Turbo tax 2007 Enter the dependent's gross income. Turbo tax 2007 If line 6 is more than line 5, the dependent must file an income tax return. Turbo tax 2007 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. Turbo tax 2007       Table 1. Turbo tax 2007 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. Turbo tax 2007   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Turbo tax 2007   Single dependents—Were you either age 65 or older or blind?     No. Turbo tax 2007 You must file a return if any of the following apply. Turbo tax 2007       Your unearned income was over $1,000. Turbo tax 2007 Your earned income was over $6,100. Turbo tax 2007 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Turbo tax 2007         Yes. Turbo tax 2007 You must file a return if any of the following apply. Turbo tax 2007     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). Turbo tax 2007       Married dependents—Were you either age 65 or older or blind?     No. Turbo tax 2007 You must file a return if any of the following apply. Turbo tax 2007       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Turbo tax 2007 Your unearned income was over $1,000. Turbo tax 2007 Your earned income was over $6,100. Turbo tax 2007 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Turbo tax 2007       Yes. Turbo tax 2007 You must file a return if any of the following apply. Turbo tax 2007       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Turbo tax 2007 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). Turbo tax 2007       Example 1. Turbo tax 2007 Joe is 20, single, not blind, and a full-time college student. Turbo tax 2007 He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Turbo tax 2007 He received $200 taxable interest income and earned $2,750 from a part-time job. Turbo tax 2007 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). Turbo tax 2007 Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Turbo tax 2007 Enter dependent's earned income plus $350   $ 3,100 2. Turbo tax 2007 Minimum amount   1,000 3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger amount   3,100 4. Turbo tax 2007 Maximum amount   6,100 5. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount   3,100 6. Turbo tax 2007 Enter the dependent's gross income. Turbo tax 2007 If line 6 is more than line 5, the dependent must file an income tax return. Turbo tax 2007 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. Turbo tax 2007   $ 2,950   Example 2. Turbo tax 2007 The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Turbo tax 2007 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). Turbo tax 2007 Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Turbo tax 2007 Enter dependent's earned income plus $350   $ 3,100 2. Turbo tax 2007 Minimum amount   1,000 3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger amount   3,100 4. Turbo tax 2007 Maximum amount   6,100 5. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount   3,100 6. Turbo tax 2007 Enter the dependent's gross income. Turbo tax 2007 If line 6 is more than line 5, the dependent must file an income tax return. Turbo tax 2007 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. Turbo tax 2007   $ 3,350   Age 65 or older or blind. Turbo tax 2007 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. Turbo tax 2007 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Turbo tax 2007 Enter dependent's earned income plus $350     2. Turbo tax 2007 Minimum amount   $1,000 3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger amount     4. Turbo tax 2007 Maximum amount   6,100 5. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount     6. Turbo tax 2007 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. Turbo tax 2007 Add lines 5 and 6. Turbo tax 2007 Enter the total     8. Turbo tax 2007 Enter the dependent's gross income. Turbo tax 2007 If line 8 is more than line 7, the dependent must file an income tax return. Turbo tax 2007 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. Turbo tax 2007 The facts are the same as in Example 2 except that Joe is also blind. Turbo tax 2007 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). Turbo tax 2007   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Turbo tax 2007 Enter dependent's earned income plus $350   $3,100 2. Turbo tax 2007 Minimum amount   1,000 3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger amount   3,100 4. Turbo tax 2007 Maximum amount   6,100 5. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount   3,100 6. Turbo tax 2007 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. Turbo tax 2007 Add lines 5 and 6. Turbo tax 2007 Enter the total   4,600 8. Turbo tax 2007 Enter the dependent's gross income. Turbo tax 2007 If line 8 is more than line 7, the dependent must file an income tax return. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Turbo tax 2007 A dependent must also file a tax return if he or she: Had wages of $108. Turbo tax 2007 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. Turbo tax 2007 Spouse itemizes. Turbo tax 2007   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). Turbo tax 2007 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. Turbo tax 2007 Income tax was withheld from his or her income. Turbo tax 2007 He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Turbo tax 2007 See the tax return instructions to find out who qualifies for these credits. Turbo tax 2007  By filing a return, the dependent can get a refund. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 Signing the child's return. Turbo tax 2007   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. Turbo tax 2007 ” Authority of parent or guardian. Turbo tax 2007   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. Turbo tax 2007   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. Turbo tax 2007 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. Turbo tax 2007 Third party designee. Turbo tax 2007   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. Turbo tax 2007 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. Turbo tax 2007   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. Turbo tax 2007 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. Turbo tax 2007 See the return instructions for more information. Turbo tax 2007 Designated as representative. Turbo tax 2007   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. Turbo tax 2007 Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Turbo tax 2007 See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Turbo tax 2007   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. Turbo tax 2007 IRS notice. Turbo tax 2007   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. Turbo tax 2007 The notice will show who to contact. Turbo tax 2007 The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Turbo tax 2007 Child's earnings. Turbo tax 2007   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. Turbo tax 2007 This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Turbo tax 2007 If the child does not pay the tax due on this income, the parent may be liable for the tax. Turbo tax 2007 Child's expenses. Turbo tax 2007   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. Turbo tax 2007 Example. Turbo tax 2007 You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Turbo tax 2007 You made the payments out of your child's earnings. Turbo tax 2007 These items can be deducted only on the child's return. Turbo tax 2007 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). Turbo tax 2007 However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Turbo tax 2007 Certain dependents cannot claim any standard deduction. Turbo tax 2007 See Standard Deduction of Zero , later. Turbo tax 2007 Worksheet 1. Turbo tax 2007   Use Worksheet 1 to figure the dependent's standard deduction. Turbo tax 2007 Worksheet 1. Turbo tax 2007 Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Turbo tax 2007 If you were 65 or older and/or blind, check the correct number of boxes below. Turbo tax 2007 Put the total number of boxes checked in box c and go to line 1. Turbo tax 2007 a. Turbo tax 2007 You 65 or older   Blind   b. Turbo tax 2007 Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Turbo tax 2007 Total boxes checked         1. Turbo tax 2007 Enter your earned income (defined below) plus $350. Turbo tax 2007 If none, enter -0-. Turbo tax 2007 1. Turbo tax 2007     2. Turbo tax 2007 Minimum amount. Turbo tax 2007   2. Turbo tax 2007 $1,000   3. Turbo tax 2007 Compare lines 1 and 2. Turbo tax 2007 Enter the larger of the two amounts here. Turbo tax 2007 3. Turbo tax 2007     4. Turbo tax 2007 Enter on line 4 the amount shown below for your filing status. Turbo tax 2007       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Turbo tax 2007     5. Turbo tax 2007 Standard deduction. Turbo tax 2007         a. Turbo tax 2007 Compare lines 3 and 4. Turbo tax 2007 Enter the smaller amount here. Turbo tax 2007 If under 65 and not blind, stop here. Turbo tax 2007 This is your standard deduction. Turbo tax 2007 Otherwise, go on to line 5b. Turbo tax 2007 5a. Turbo tax 2007     b. Turbo tax 2007 If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Turbo tax 2007 Enter the result here. Turbo tax 2007 5b. Turbo tax 2007     c. Turbo tax 2007 Add lines 5a and 5b. Turbo tax 2007 This is your standard deduction for 2013. Turbo tax 2007 5c. Turbo tax 2007     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Turbo tax 2007 It also includes any amount received as a scholarship that you must include in income. Turbo tax 2007   Example 1. Turbo tax 2007 Michael is single, age 15, and not blind. Turbo tax 2007 His parents can claim him as a dependent on their tax return. Turbo tax 2007 He has taxable interest income of $800 and wages of $150. Turbo tax 2007 He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Turbo tax 2007 On line 3, he enters $1,000, the larger of $500 or $1,000. Turbo tax 2007 Michael enters $6,100 on line 4. Turbo tax 2007 On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Turbo tax 2007 His standard deduction is $1,000. Turbo tax 2007 Example 2. Turbo tax 2007 Judy, a full-time student, is single, age 22, and not blind. Turbo tax 2007 Her parents can claim her as a dependent on their tax return. Turbo tax 2007 She has dividend income of $275 and wages of $2,500. Turbo tax 2007 She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Turbo tax 2007 On line 3, she enters $2,850, the larger of $2,850 or $1,000. Turbo tax 2007 She enters $6,100 on line 4. Turbo tax 2007 On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Turbo tax 2007 Example 3. Turbo tax 2007 Amy, who is single, is claimed as a dependent on her parents' tax return. Turbo tax 2007 She is 18 years old and blind. Turbo tax 2007 She has taxable interest income of $1,000 and wages of $2,000. Turbo tax 2007 She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Turbo tax 2007 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. Turbo tax 2007 Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Turbo tax 2007 She enters $1,500 (the number in box c times $1,500) on line 5b. Turbo tax 2007 Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Turbo tax 2007 Standard Deduction of Zero The standard deduction for the following dependents is zero. Turbo tax 2007 A married dependent filing a separate return whose spouse itemizes deductions. Turbo tax 2007 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. Turbo tax 2007 A nonresident or dual-status alien dependent, unless the dependent is married to a U. Turbo tax 2007 S. Turbo tax 2007 citizen or resident alien at the end of the year and chooses to be treated as a U. Turbo tax 2007 S. Turbo tax 2007 resident for the year. Turbo tax 2007 See Publication 519, U. Turbo tax 2007 S. Turbo tax 2007 Tax Guide for Aliens, for information on making this choice. Turbo tax 2007 Example. Turbo tax 2007 Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Turbo tax 2007 However, her husband elects to file a separate return and itemize his deductions. Turbo tax 2007 Because he itemizes, Jennifer's standard deduction on her return is zero. Turbo tax 2007 She can, however, itemize any of her allowable deductions. Turbo tax 2007 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. Turbo tax 2007 This is true even if the other taxpayer does not actually claim the exemption. Turbo tax 2007 Example. Turbo tax 2007 James and Barbara can claim their child, Ben, as a dependent on their return. Turbo tax 2007 Ben is a college student who works during the summer and must file a tax return. Turbo tax 2007 Ben cannot claim his own exemption on his return. Turbo tax 2007 This is true even if James and Barbara do not claim him as a dependent on their return. Turbo tax 2007 Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Turbo tax 2007 If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Turbo tax 2007 The exemption from withholding does not apply to social security and Medicare taxes. Turbo tax 2007 Conditions for exemption from withholding. Turbo tax 2007   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Turbo tax 2007 For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Turbo tax 2007 For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Turbo tax 2007 Dependents. Turbo tax 2007   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Turbo tax 2007 The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Turbo tax 2007 The employee's unearned income will be more than $350. Turbo tax 2007 Exceptions. Turbo tax 2007   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. Turbo tax 2007 The above exceptions do not apply to supplemental wages greater than $1,000,000. Turbo tax 2007 For more information, see Exemption From Withholding in chapter 1 of Publication 505. Turbo tax 2007 Example. Turbo tax 2007 Guy is 17 and a student. Turbo tax 2007 During the summer he works part time at a grocery store. Turbo tax 2007 He expects to earn about $1,200 this year. Turbo tax 2007 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. Turbo tax 2007 The only other income he expects during the year is $375 interest on a savings account. Turbo tax 2007 He expects that his parents will be able to claim him as a dependent on their tax return. Turbo tax 2007 He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Turbo tax 2007 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. Turbo tax 2007 Claiming exemption from withholding. Turbo tax 2007    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Turbo tax 2007 The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Turbo tax 2007 Renewing an exemption from withholding. Turbo tax 2007   An exemption from withholding is good for only one year. Turbo tax 2007 An employee must file a new Form W-4 by February 15 each year to continue the exemption. Turbo tax 2007 Part 2. Turbo tax 2007 Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Turbo tax 2007 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. Turbo tax 2007 (See Parent's Election To Report Child's Interest and Dividends , later. Turbo tax 2007 ) 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. Turbo tax 2007 (See Tax for Certain Children Who Have Unearned Income , later. Turbo tax 2007 ) For these rules, the term “child” includes a legally adopted child and a stepchild. Turbo tax 2007 These rules apply whether or not the child is a dependent. Turbo tax 2007 These rules do not apply if neither of the child's parents were living at the end of the year. Turbo tax 2007 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. Turbo tax 2007 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 . Turbo tax 2007 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. Turbo tax 2007 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Turbo tax 2007 Parents are married. Turbo tax 2007   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Turbo tax 2007 Parents not living together. Turbo tax 2007   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. Turbo tax 2007 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Turbo tax 2007   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. Turbo tax 2007 Parents are divorced. Turbo tax 2007   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. Turbo tax 2007 Custodial parent remarried. Turbo tax 2007   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Turbo tax 2007 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Turbo tax 2007 Do not use the return of the noncustodial parent. Turbo tax 2007   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Turbo tax 2007 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Turbo tax 2007 Parents never married. Turbo tax 2007   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. Turbo tax 2007 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Turbo tax 2007 Widowed parent remarried. Turbo tax 2007   If a widow or widower remarries, the new spouse is treated as the child's other parent. Turbo tax 2007 The rules explained earlier under Custodial parent remarried apply. Turbo tax 2007 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. Turbo tax 2007 If you do, your child will not have to file a return. Turbo tax 2007 You can make this election only if all the following conditions are met. Turbo tax 2007 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Turbo tax 2007 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Turbo tax 2007 The child's gross income was less than $10,000. Turbo tax 2007 The child is required to file a return unless you make this election. Turbo tax 2007 The child does not file a joint return for the year. Turbo tax 2007 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. Turbo tax 2007 No federal income tax was withheld from your child's income under the backup withholding rules. Turbo tax 2007 You are the parent whose return must be used when applying the special tax rules for children. Turbo tax 2007 (See Which Parent's Return To Use , earlier. Turbo tax 2007 ) These conditions are also shown in Figure 1. Turbo tax 2007 Certain January 1 birthdays. Turbo tax 2007   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Turbo tax 2007 You cannot make this election for such a child unless the child was a full-time student. Turbo tax 2007   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Turbo tax 2007 You cannot make this election for such a child. Turbo tax 2007 How to make the election. Turbo tax 2007    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Turbo tax 2007 (If you make this election, you cannot file Form 1040A or Form 1040EZ. Turbo tax 2007 ) Attach a separate Form 8814 for each child for whom you make the election. Turbo tax 2007 You can make the election for one or more children and not for others. Turbo tax 2007 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Turbo tax 2007 Rate may be higher. Turbo tax 2007   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. Turbo tax 2007 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Turbo tax 2007 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. Turbo tax 2007 Deductions you cannot take. Turbo tax 2007   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. Turbo tax 2007 The additional standard deduction if the child is blind. Turbo tax 2007 The deduction for a penalty on an early withdrawal of your child's savings. Turbo tax 2007 Itemized deductions (such as your child's investment expenses or charitable contributions). Turbo tax 2007 Figure 1. Turbo tax 2007 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Turbo tax 2007 Figure 1. Turbo tax 2007 Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Turbo tax 2007   If you use Form 8814, your child's unearned income is considered your unearned income. Turbo tax 2007 To figure the limit on your deductible investment interest, add the child's unearned income to yours. Turbo tax 2007 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. Turbo tax 2007 Alternative minimum tax. Turbo tax 2007    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. Turbo tax 2007 If it is, you must include it with your own tax preference items when figuring your AMT. Turbo tax 2007 See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Turbo tax 2007 Reduced deductions or credits. Turbo tax 2007   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Turbo tax 2007 Deduction for contributions to a traditional individual retirement arrangement (IRA). Turbo tax 2007 Deduction for student loan interest. Turbo tax 2007 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Turbo tax 2007 Credit for child and dependent care expenses. Turbo tax 2007 Child tax credit. Turbo tax 2007 Education tax credits. Turbo tax 2007 Earned income credit. Turbo tax 2007 Penalty for underpayment of estimated tax. Turbo tax 2007   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. Turbo tax 2007 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. Turbo tax 2007 Get Publication 505 for more information. Turbo tax 2007 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Turbo tax 2007 Only the amount over $2,000 is added to your income. Turbo tax 2007 The amount over $2,000 is shown on Form 8814, line 6. Turbo tax 2007 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Turbo tax 2007 Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Turbo tax 2007 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. Turbo tax 2007 On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Turbo tax 2007 Note. Turbo tax 2007 The tax on the first $2,000 is figured on Form 8814, Part II. Turbo tax 2007 See Figuring Additional Tax , later. Turbo tax 2007 Qualified dividends. Turbo tax 2007   Enter on Form 8814, line 2a, any ordinary dividends your child received. Turbo tax 2007 This amount may include qualified dividends. Turbo tax 2007 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. Turbo tax 2007 For detailed information about qualified dividends, see Publication 550. Turbo tax 2007   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. Turbo tax 2007 You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Turbo tax 2007   Enter the child's qualified dividends on Form 8814, line 2b. Turbo tax 2007 But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Turbo tax 2007 Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Turbo tax 2007 (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. Turbo tax 2007 ) Capital gain distributions. Turbo tax 2007   Enter on Form 8814, line 3, any capital gain distributions your child received. Turbo tax 2007 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. Turbo tax 2007 You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Turbo tax 2007   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Turbo tax 2007 (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. Turbo tax 2007 ) Collectibles (28% rate) gain. Turbo tax 2007    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. Turbo tax 2007 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Turbo tax 2007 The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Turbo tax 2007 The denominator is the child's total capital gain distribution. Turbo tax 2007 Enter the result on line 4 of the 28% Rate Gain Worksheet. Turbo tax 2007 Unrecaptured section 1250 gain. Turbo tax 2007   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. Turbo tax 2007 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Turbo tax 2007 The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Turbo tax 2007 The denominator is the child's total capital gain distribution. Turbo tax 2007 Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Turbo tax 2007 Section 1202 gain. Turbo tax 2007   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. Turbo tax 2007 (For information about the exclusion, see chapter 4 of Publication 550. Turbo tax 2007 ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Turbo tax 2007 The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Turbo tax 2007 The denominator is the child's total capital gain distribution. Turbo tax 2007 Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Turbo tax 2007 In some cases, the exclusion is more than 50%. Turbo tax 2007 See the instructions for Schedule D for details and information on how to report the exclusion amount. Turbo tax 2007 Example. Turbo tax 2007 Fred is 6 years old. Turbo tax 2007 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. Turbo tax 2007 (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Turbo tax 2007 ) All of the ordinary dividends are qualified dividends. Turbo tax 2007 He has no other income and is not subject to backup withholding. Turbo tax 2007 No estimated tax payments were made under his name and social security number. Turbo tax 2007 Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Turbo tax 2007 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. Turbo tax 2007 They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Turbo tax 2007 They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Turbo tax 2007 They enter the amount of Fred's capital gain distributions, $525, on line 3. Turbo tax 2007 Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Turbo tax 2007 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. Turbo tax 2007 This is the total amount from Form 8814 to be reported on their return. Turbo tax 2007 Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Turbo tax 2007 They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Turbo tax 2007 They enter the result, . Turbo tax 2007 75, on line 7. Turbo tax 2007 They divide the amount on line 3, $525, by the amount on line 4, $2,100. Turbo tax 2007 They enter the result, . Turbo tax 2007 25, on line 8. Turbo tax 2007 They multiply the amount on line 6, $100, by the decimal on line 7, . Turbo tax 2007 75, and enter the result, $75, on line 9. Turbo tax 2007 They multiply the amount on line 6, $100, by the decimal on line 8, . Turbo tax 2007 25, and enter the result, $25, on line 10. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Turbo tax 2007 Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Turbo tax 2007 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. Turbo tax 2007 This tax is added to the tax figured on your income. Turbo tax 2007 This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Turbo tax 2007 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Turbo tax 2007 Check box a on Form 1040, line 44, or Form 1040NR, line 42. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Turbo tax 2007 When Form 8615 must be filed. Turbo tax 2007   Form 8615 must be filed for a child if all of the following statements are true. Turbo tax 2007 The child's unearned income was more than $2,000. Turbo tax 2007 The child is required to file a return for 2013. Turbo tax 2007 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. Turbo tax 2007 At least one of the child's parents was alive at the end of 2013. Turbo tax 2007 The child does not file a joint return for 2013. Turbo tax 2007 These conditions are also shown in Figure 2. Turbo tax 2007 Certain January 1 birthdays. Turbo tax 2007   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Turbo tax 2007 IF a child was born on. Turbo tax 2007 . Turbo tax 2007 . Turbo tax 2007 THEN, at the end of 2013, the child is considered to be. Turbo tax 2007 . Turbo tax 2007 . Turbo tax 2007 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Turbo tax 2007 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Turbo tax 2007  **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. Turbo tax 2007  ***Do not use Form 8615 for this child. Turbo tax 2007 Figure 2. Turbo tax 2007 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Turbo tax 2007 Figure 2. Turbo tax 2007 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. Turbo tax 2007 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Turbo tax 2007 ) On line C, check the box for the parent's filing status. Turbo tax 2007 See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Turbo tax 2007 Parent with different tax year. Turbo tax 2007   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. Turbo tax 2007 Example. Turbo tax 2007 Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Turbo tax 2007 Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Turbo tax 2007 Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Turbo tax 2007 Parent's return information not known timely. Turbo tax 2007   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. Turbo tax 2007   You can use any reasonable estimate. Turbo tax 2007 This includes using information from last year's return. Turbo tax 2007 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Turbo tax 2007   When you get the correct information, file an amended return on Form 1040X, Amended U. Turbo tax 2007 S. Turbo tax 2007 Individual Income Tax Return. Turbo tax 2007 Extension of time to file. Turbo tax 2007   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. Turbo tax 2007 S. Turbo tax 2007 Individual Income Tax Return. Turbo tax 2007 See the instructions for Form 4868 for details. Turbo tax 2007    An extension of time to file is not an extension of time to pay. Turbo tax 2007 You must make an accurate estimate of the tax for 2013. Turbo tax 2007 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. Turbo tax 2007 See Form 4868 and its instructions. Turbo tax 2007 Parent's return information not available. Turbo tax 2007   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). Turbo tax 2007 How to request. Turbo tax 2007   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. Turbo tax 2007 (The IRS cannot process a request received before the end of the tax year. Turbo tax 2007 )    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. Turbo tax 2007   The request must contain all of the following. Turbo tax 2007 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. Turbo tax 2007 Proof of the child's age (for example, a copy of the child's birth certificate). Turbo tax 2007 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). Turbo tax 2007 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. Turbo tax 2007    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. Turbo tax 2007 Step 1. Turbo tax 2007 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. Turbo tax 2007 To do that, use Form 8615, Part I. Turbo tax 2007 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. Turbo tax 2007 Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Turbo tax 2007 Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 Alternate Worksheet for Form 8615, Line 1 A. Turbo tax 2007 Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Turbo tax 2007 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. Turbo tax 2007 Enter this total as a positive number (greater than zero)   C. Turbo tax 2007 Add line A and line B and  enter the total   D. Turbo tax 2007 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. Turbo tax 2007 Subtract line D from line C. Turbo tax 2007 Enter the result here and on Form 8615, line 1   Unearned income defined. Turbo tax 2007   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Turbo tax 2007 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. Turbo tax 2007 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). Turbo tax 2007 Nontaxable income. Turbo tax 2007   For this purpose, unearned income includes only amounts the child must include in gross income. Turbo tax 2007 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Turbo tax 2007 Capital loss. Turbo tax 2007   A child's capital losses are taken into account in figuring the child's unearned income. Turbo tax 2007 Capital losses are first applied against capital gains. Turbo tax 2007 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. Turbo tax 2007 Any difference over $3,000 is carried to the next year. Turbo tax 2007 Income from property received as a gift. Turbo tax 2007   A child's unearned income includes all income produced by property belonging to the child. Turbo tax 2007 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. Turbo tax 2007   A child's unearned income includes income produced by property given as a gift to the child. Turbo tax 2007 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Turbo tax 2007 Example. Turbo tax 2007 Amanda Black, age 13, received the following income. Turbo tax 2007 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. Turbo tax 2007 Amanda's unearned income is $2,100. Turbo tax 2007 This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Turbo tax 2007 Her wages are earned (not unearned) income because they are received for work actually performed. Turbo tax 2007 Her tax-exempt interest is not included because it is nontaxable. Turbo tax 2007 Trust income. Turbo tax 2007   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. Turbo tax 2007   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Turbo tax 2007 See the Form 8615 instructions for details. Turbo tax 2007 Adjustment to income. Turbo tax 2007   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. Turbo tax 2007 Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Turbo tax 2007 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. Turbo tax 2007 Directly connected. Turbo tax 2007   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. Turbo tax 2007 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Turbo tax 2007    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Turbo tax 2007 Only the amount greater than 2% of the child's adjusted gross income can be deducted. Turbo tax 2007 See Publication 529, Miscellaneous Deductions, for more information. Turbo tax 2007 Example 1. Turbo tax 2007 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. Turbo tax 2007 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Turbo tax 2007 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. Turbo tax 2007 Example 2. Turbo tax 2007 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Turbo tax 2007 She has no other income. Turbo tax 2007 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. Turbo tax 2007 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Turbo tax 2007 The amount on line 2 is $2,050. Turbo tax 2007 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Turbo tax 2007 Line 3 Subtract line 2 from line 1 and enter the result on this line. Turbo tax 2007 If zero or less, do not complete the rest of the form. Turbo tax 2007 However, you must still attach Form 8615 to the child's tax return. Turbo tax 2007 Figure the tax on the child's taxable income in the normal manner. Turbo tax 2007 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. Turbo tax 2007 Child files Form 2555 or 2555-EZ. Turbo tax 2007   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. Turbo tax 2007 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Turbo tax 2007 Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Turbo tax 2007 Enter on Form 8615, line 5, the smaller of line 3 or line 4. Turbo tax 2007 This is the child's net unearned income. Turbo tax 2007 If zero or less, do not complete the rest of the form. Turbo tax 2007 However, you must still attach Form 8615 to the child's tax return. Turbo tax 2007 Figure the tax on the child's taxable income in the normal manner. Turbo tax 2007 Step 2. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 For example, do not refigure the medical expense deduction. Turbo tax 2007 Figure the tentative tax on Form 8615, lines 6 through 13. Turbo tax 2007 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. Turbo tax 2007 If the parent's taxable income is zero or less, enter zero on line 6. Turbo tax 2007 Parent files Form 2555 or 2555-EZ. Turbo tax 2007   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. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 Do not include the amount from line 5 of the Form 8615 being completed. Turbo tax 2007 (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. Turbo tax 2007 ) Example. Turbo tax 2007 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Turbo tax 2007 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. Turbo tax 2007 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Turbo tax 2007 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Turbo tax 2007 Other children's information not available. Turbo tax 2007   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. Turbo tax 2007 Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Turbo tax 2007 Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Turbo tax 2007 You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Turbo tax 2007 Net capital gain. Turbo tax 2007   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. Turbo tax 2007 If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Turbo tax 2007 Qualified dividends. Turbo tax 2007   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Turbo tax 2007 Net capital gain and qualified dividends on line 8. Turbo tax 2007   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Turbo tax 2007   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Turbo tax 2007   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. Turbo tax 2007   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. Turbo tax 2007   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Turbo tax 2007 See the instructions for Form 8615 for more details. Turbo tax 2007 Note. Turbo tax 2007 The amount of any net capital gain or qualified dividends is not separately reported on line 8. Turbo tax 2007 It is  needed, however, when figuring the tax on line 9. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Turbo tax 2007 For details, see the instructions for Form 8615, line 9. Turbo tax 2007 However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Turbo tax 2007 But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Turbo tax 2007 Child files Form 2555 or 2555-EZ. Turbo tax 2007   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. Turbo tax 2007 Using the Schedule D Tax Worksheet for line 9 tax. Turbo tax 2007    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. Turbo tax 2007 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. Turbo tax 2007 Then figure the line 9 tax using another Schedule D Tax Worksheet. Turbo tax 2007 (Do not attach this Schedule D Tax Worksheet to the child's return. Turbo tax 2007 )   Complete this Schedule D Tax Worksheet as follows. Turbo tax 2007 On line 1, enter the amount from Form 8615, line 8. Turbo tax 2007 On line 2, enter the qualified dividends included on Form 8615, line 8. Turbo tax 2007 (See the earlier discussion for line 8. Turbo tax 2007 ) 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. Turbo tax 2007 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. Turbo tax 2007 If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Turbo tax 2007 On lines 5 and 6, follow the worksheet instructions. Turbo tax 2007 On line 7, enter the net capital gain included on Form 8615, line 8. Turbo tax 2007 (See the earlier discussion for line 8. Turbo tax 2007 ) On lines 8 through 10, follow the worksheet instructions. Turbo tax 2007 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). Turbo tax 2007 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. Turbo tax 2007 Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Turbo tax 2007 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. Turbo tax 2007 Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Turbo tax 2007 Determine whether there is a line 8 capital gain excess as follows. Turbo tax 2007 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. Turbo tax 2007 (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. Turbo tax 2007 ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Turbo tax 2007 Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Turbo tax 2007 If the result is more than zero, that amount is the line 8 capital gain excess. Turbo tax 2007 If the result is zero or less, there is no line 8 capital gain excess. Turbo tax 2007 If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Turbo tax 2007 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. Turbo tax 2007 (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Turbo tax 2007 ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 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. Turbo tax 2007 Complete lines 12 through 45 following the worksheet instructions. Turbo tax 2007 Use the parent's filing status to complete lines 15, 42, and 44. Turbo tax 2007 Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line