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Irs Tax Forms 2010

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Irs Tax Forms 2010

Irs tax forms 2010 7. Irs tax forms 2010   Filing Information Table of Contents Introduction Topics - This chapter discusses: Useful Items - You may want to see: What, When, and Where To FileResident Aliens Nonresident Aliens Amended Returns and Claims for Refund Other Forms You May Have To File PenaltiesCivil Penalties Criminal Penalties Introduction This chapter provides the basic filing information that you may need. Irs tax forms 2010 Topics - This chapter discusses: Forms aliens must file, When and where to file, Penalties, and Amended returns and claims for refund. Irs tax forms 2010 Useful Items - You may want to see: Forms (and Instructions) 1040 U. Irs tax forms 2010 S. Irs tax forms 2010 Individual Income Tax Return 1040A U. Irs tax forms 2010 S. Irs tax forms 2010 Individual Income Tax Return 1040EZ Income Tax Return for Single and Joint Filers With No Dependents 1040NR U. Irs tax forms 2010 S. Irs tax forms 2010 Nonresident Alien Income Tax Return 1040NR-EZ U. Irs tax forms 2010 S. Irs tax forms 2010 Income Tax Return for Certain Nonresident Aliens With No Dependents See chapter 12 for information about getting these forms. Irs tax forms 2010 What, When, and Where To File What return you must file as well as when and where you file that return, depends on your status at the end of the tax year as a resident or a nonresident alien. Irs tax forms 2010 Resident Aliens Resident aliens should file Form 1040EZ, 1040A, or 1040 at the address shown in the instructions for that form. Irs tax forms 2010 The due date for filing the return and paying any tax due is April 15 of the year following the year for which you are filing a return (but see the Tip, later). Irs tax forms 2010 Under U. Irs tax forms 2010 S. Irs tax forms 2010 immigration law, a lawful permanent resident who is required to file a tax return as a resident and fails to do so may be regarded as having abandoned status and may lose permanent resident status. Irs tax forms 2010 Extensions of time to file. Irs tax forms 2010   You are allowed an automatic extension to June 15 to file if your main place of business and the home you live in are outside the United States and Puerto Rico on April 15. Irs tax forms 2010 You can get an extension of time to October 15 to file your return if you get an extension by April 15 (June 15 if you qualify for the June 15 extension). Irs tax forms 2010 Use Form 4868 to get the extension to October 15. Irs tax forms 2010 In addition to this 6-month extension, taxpayers who are out of the country (as defined in the Form 4868 instructions) can request a discretionary 2-month additional extension of time to file their returns (to December 15 for calendar year taxpayers). Irs tax forms 2010 To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Irs tax forms 2010 Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address:  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Irs tax forms 2010   The discretionary 2-month additional extension is not available to taxpayers who have an approved extension of time to file on Form 2350 (for U. Irs tax forms 2010 S. Irs tax forms 2010 citizens and resident aliens abroad who expect to qualify for special tax treatment). Irs tax forms 2010    If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day which is not a Saturday, Sunday, or legal holiday. Irs tax forms 2010 You may be able to file your return electronically. Irs tax forms 2010 See IRS e-file in your form instructions. Irs tax forms 2010 Nonresident Aliens Nonresident aliens who are required to file an income tax return should use Form 1040NR or, if qualified, Form 1040NR-EZ. Irs tax forms 2010 If you are any of the following, you must file a return. Irs tax forms 2010 A nonresident alien individual engaged or considered to be engaged in a trade or business in the United States during 2013. Irs tax forms 2010 (But see Exceptions , later. Irs tax forms 2010 ) You must file even if: Your income did not come from a trade or business conducted in the United States, You have no income from U. Irs tax forms 2010 S. Irs tax forms 2010 sources, or Your income is exempt from income tax. Irs tax forms 2010 A nonresident alien individual not engaged in a trade or business in the United States with U. Irs tax forms 2010 S. Irs tax forms 2010 income on which the tax liability was not satisfied by the withholding of tax at the source. Irs tax forms 2010 A representative or agent responsible for filing the return of an individual described in (1) or (2). Irs tax forms 2010 A fiduciary for a nonresident alien estate or trust. Irs tax forms 2010 You must also file if you want to: Claim a refund of overwithheld or overpaid tax, or Claim the benefit of any deductions or credits. Irs tax forms 2010 For example, if you have no U. Irs tax forms 2010 S. Irs tax forms 2010 business activities but have income from real property that you choose to treat as effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to take any allowable deductions against that income. Irs tax forms 2010 For information on what is timely, see When to file for deductions and credits under When To File, later. Irs tax forms 2010 Exceptions. Irs tax forms 2010   You do not need to file Form 1040NR or Form 1040NR-EZ if you meet either of the following conditions. Irs tax forms 2010 Your only U. Irs tax forms 2010 S. Irs tax forms 2010 trade or business was the performance of personal services, and Your wages were less than $3,900, and You have no other need to file a return to claim a refund of overwithheld taxes, to satisfy additional withholding at source, or to claim income exempt or partly exempt by treaty. Irs tax forms 2010 You were a nonresident alien student, teacher, or trainee who was temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa and you have no income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc. Irs tax forms 2010 Even if you have left the United States and filed a Form 1040-C, U. Irs tax forms 2010 S. Irs tax forms 2010 Departing Alien Income Tax Return, on departure, you still must file an annual U. Irs tax forms 2010 S. Irs tax forms 2010 income tax return. Irs tax forms 2010 If you are married and both you and your spouse are required to file, you must each file a separate return. Irs tax forms 2010 Form 1040NR-EZ You can use Form 1040NR-EZ if all of the following conditions are met. Irs tax forms 2010 You do not claim any dependents. Irs tax forms 2010 You cannot be claimed as a dependent on someone else's U. Irs tax forms 2010 S. Irs tax forms 2010 tax return. Irs tax forms 2010 If you were married, you do not claim an exemption for your spouse. Irs tax forms 2010 Your taxable income is less than $100,000. Irs tax forms 2010 The only itemized deduction you can claim is for state and local income taxes. Irs tax forms 2010 Note. Irs tax forms 2010 Residents of India who were students or business apprentices may be able to take the standard deduction instead of the itemized deduction for state and local income taxes. Irs tax forms 2010 See chapter 5. Irs tax forms 2010 Your only U. Irs tax forms 2010 S. Irs tax forms 2010 source income is from wages, salaries, tips, taxable refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or dividends. Irs tax forms 2010 (If you had taxable interest or dividend income, you cannot use this form. Irs tax forms 2010 ) You are not claiming any adjustments to income other than the student loan interest deduction or scholarship and fellowship grants excluded. Irs tax forms 2010 You are not claiming any tax credits. Irs tax forms 2010 This is not an “expatriation return. Irs tax forms 2010 ” See Expatriation Tax in chapter 4. Irs tax forms 2010 The only taxes you owe are: The income tax from the Tax Table. Irs tax forms 2010 The social security and Medicare tax from Form 4137 or Form 8919. Irs tax forms 2010 You are not claiming a credit for excess social security and tier 1 RRTA tax withheld. Irs tax forms 2010 You are not filing Form 8959, to figure the amount of Additional Medicare Tax you owe and/or the amount of Additional Medicare Tax withheld by your employer, if any. Irs tax forms 2010 If you do not meet all of the above conditions, you must file Form 1040NR. Irs tax forms 2010 When To File If you are an employee and you receive wages subject to U. Irs tax forms 2010 S. Irs tax forms 2010 income tax withholding, you will generally file by the 15th day of the 4th month after your tax year ends. Irs tax forms 2010 For the 2013 calendar year, file your return by April 15, 2014. Irs tax forms 2010 If you are not an employee who receives wages subject to U. Irs tax forms 2010 S. Irs tax forms 2010 income tax withholding, you must file by the 15th day of the 6th month after your tax year ends. Irs tax forms 2010 For the 2013 calendar year, file your return by June 16, 2014 (because June 15 is a Sunday. Irs tax forms 2010 ) Extensions of time to file. Irs tax forms 2010   If you cannot file your return by the due date, file Form 4868 or use one of the electronic filing options explained in the Form 4868 instructions. Irs tax forms 2010 For the 2013 calendar year, this will extend the due date to October 15, 2014 (December 15, 2014, if the regular due date of your return is June 16, 2014). Irs tax forms 2010 You must file the extension by the regular due date of your return. Irs tax forms 2010   In addition to the 6-month extension to October 15, taxpayers whose main place of business is outside the United States and Puerto Rico and who live outside those jurisdictions can request a discretionary 2-month extension of time to file their returns (to December 15 for calendar year taxpayers). Irs tax forms 2010 To request this extension, you must send the IRS a letter explaining the reasons why you need the additional 2 months. Irs tax forms 2010 Send the letter by the extended due date (October 15 for calendar year taxpayers) to the following address: Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215   You will not receive any notification from the IRS unless your request is denied for being untimely. Irs tax forms 2010 When to file for deductions and credits. Irs tax forms 2010   To get the benefit of any allowable deductions or credits, you must timely file a true and accurate return. Irs tax forms 2010 For this purpose, a return is timely if it is filed within 16 months of the due date just discussed. Irs tax forms 2010 However, if you did not file a 2012 tax return and 2013 is not the first year for which you are required to file one, your 2013 return is timely for this purpose if it is filed by the earlier of: The date that is 16 months after the due date for filing your 2013 return, or The date the IRS notifies you that your 2013 return has not been filed and that you cannot claim certain deductions and credits. Irs tax forms 2010 The allowance of the following credits is not affected by this time requirement. Irs tax forms 2010 Credit for withheld taxes. Irs tax forms 2010 Credit for excise tax on certain uses of gasoline and special fuels. Irs tax forms 2010 Credit for tax paid by a mutual fund (or other regulated investment company) or a real estate investment trust on undistributed long-term capital gains. Irs tax forms 2010 Protective return. Irs tax forms 2010   If your activities in the United States were limited and you do not believe that you had any gross income effectively connected with a U. Irs tax forms 2010 S. Irs tax forms 2010 trade or business during the year, you can file a protective return (Form 1040NR) by the deadline explained above. Irs tax forms 2010 By filing a protective return, you protect your right to receive the benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. Irs tax forms 2010 You are not required to report any effectively connected income or any deductions on the protective return, but you must give the reason the return is being filed. Irs tax forms 2010   If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. Irs tax forms 2010 To protect your right to claim deductions or credits resulting from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income. Irs tax forms 2010   You can follow the same procedure if you believe you have no U. Irs tax forms 2010 S. Irs tax forms 2010 tax liability because of a U. Irs tax forms 2010 S. Irs tax forms 2010 tax treaty. Irs tax forms 2010 Be sure to also complete item L on page 5 of Form 1040NR. Irs tax forms 2010 Waiver of filing deadline. Irs tax forms 2010   The IRS may waive the filing deadline if you establish that, based on the facts and circumstances, you acted reasonably and in good faith in failing to file a U. Irs tax forms 2010 S. Irs tax forms 2010 income tax return (including a protective return) and you cooperate with the IRS in determining your U. Irs tax forms 2010 S. Irs tax forms 2010 income tax liability for the tax year for which you did not file a return. Irs tax forms 2010 Where To File If you are not enclosing a payment, file Form 1040NR-EZ and Form 1040NR at the following address. Irs tax forms 2010  Department of the Treasury Internal Revenue Service Center Austin, TX 73301-0215 If enclosing a payment, mail your return to:  Internal Revenue Service  P. Irs tax forms 2010 O. Irs tax forms 2010 Box 1303 Charlotte, NC 28201-1303 Aliens from the U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islands. Irs tax forms 2010    If you are a bona fide resident of the U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islands and file your income tax returns at the following address. Irs tax forms 2010 Virgin Islands Bureau of Internal Revenue 6115 Estate Smith Bay Suite 225 St. Irs tax forms 2010 Thomas, VI 00802   Report all income from U. Irs tax forms 2010 S. Irs tax forms 2010 sources, as well as income from other sources, on your return. Irs tax forms 2010 For information on filing U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islands returns, contact the U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islands Bureau of Internal Revenue. Irs tax forms 2010   Chapter 8 discusses withholding from U. Irs tax forms 2010 S. Irs tax forms 2010 wages of U. Irs tax forms 2010 S. Irs tax forms 2010 Virgin Islanders. Irs tax forms 2010 Aliens from Guam or the Commonwealth of the Northern Mariana Islands. Irs tax forms 2010   If you are a bona fide resident of Guam or the Commonwealth of the Northern Mariana Islands (CNMI) during your entire tax year, you must file your return with, and pay any tax due to, Guam or the CNMI. Irs tax forms 2010 Report all income, including income from U. Irs tax forms 2010 S. Irs tax forms 2010 sources, on your return. Irs tax forms 2010 It is not necessary to file a separate U. Irs tax forms 2010 S. Irs tax forms 2010 income tax return. Irs tax forms 2010    Bona fide residents of Guam should file their Guam returns at the following address. Irs tax forms 2010   Department of Revenue and Taxation Government of Guam P. Irs tax forms 2010 O. Irs tax forms 2010 Box 23607 GMF, GU 96921    Bona fide residents of the CNMI should file their CNMI income tax returns at the following address. Irs tax forms 2010   Department of Finance Division of Revenue and Taxation Commonwealth of the Northern Mariana Islands P. Irs tax forms 2010 O. Irs tax forms 2010 Box 5234 CHRB Saipan, MP 96950   If you are not a bona fide resident of Guam or the CNMI, see Pub. Irs tax forms 2010 570, Tax Guide for Individuals With Income From U. Irs tax forms 2010 S. Irs tax forms 2010 Possessions, for information on where to file your return. Irs tax forms 2010 Amended Returns and Claims for Refund If you find changes in your income, deductions, or credits after you mail your return, file Form 1040X, Amended U. Irs tax forms 2010 S. Irs tax forms 2010 Individual Income Tax Return. Irs tax forms 2010 Also use Form 1040X if you should have filed Form 1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice versa. Irs tax forms 2010 If you amend Form 1040NR or Form 1040NR-EZ or file the correct return, attach the corrected return (Form 1040, Form 1040NR, etc. Irs tax forms 2010 ) to Form 1040X. Irs tax forms 2010 Print “Amended” across the top. Irs tax forms 2010 Ordinarily, an amended return claiming a refund must be filed within 3 years from the date your return was filed or within 2 years from the time the tax was paid, whichever is later. Irs tax forms 2010 A return filed before the final due date is considered to have been filed on the due date. Irs tax forms 2010 Other Forms You May Have To File You may be required to file information returns to report certain foreign income or assets, or monetary transactions. Irs tax forms 2010 FinCen Form 105 FinCEN Form 105 (formerly Customs Form 4790), Report of International Transportation of Currency or Monetary Instruments, must be filed by each person who physically transports, mails, or ships, or causes to be physically transported, mailed, or shipped, currency or other monetary instruments in a total amount of more than $10,000 at one time from the United States to any place outside the United States, or into the United States from any place outside the United States. Irs tax forms 2010 The filing requirement also applies to each person who receives in the United States currency or monetary instruments totaling more than $10,000 at one time from any place outside of the United States. Irs tax forms 2010 The term “monetary instruments” means the following: Coin and currency of the United States or of any other country, Travelers' checks in any form, Investment securities or stock in bearer form or otherwise in such form that title to them passes upon delivery, Negotiable instruments (including checks, promissory notes, and money orders) in bearer form, endorsed without restriction, made out to a fictitious payee, or otherwise in such form that title to them passes upon delivery, and Checks, promissory notes, and money orders which are signed but on which the name of the payee has been omitted. Irs tax forms 2010 However, the term does not include: Checks or money orders made payable to the order of a named person which have not been endorsed or which contain restrictive endorsements, Warehouse receipts, or Bills of lading. Irs tax forms 2010 A transfer of funds through normal banking procedures (wire transfer) that does not involve the physical transportation of currency or monetary instruments is not required to be reported on FinCEN Form 105. Irs tax forms 2010 Filing requirements. Irs tax forms 2010   FinCEN Form 105 filing requirements follow. Irs tax forms 2010 Recipients. Irs tax forms 2010   Each person who receives currency or other monetary instruments in the United States must file FinCEN Form 105 within 15 days after receipt, with the Customs officer in charge at any port of entry or departure, or by mail at the following address. Irs tax forms 2010 Commissioner of Customs  Attention: Currency Transportation Reports Washington, DC 20229 Shippers or mailers. Irs tax forms 2010   If the currency or other monetary instrument does not accompany the person entering or departing the United States, FinCEN Form 105 can be filed by mail at the above address on or before the date of entry, departure, mailing, or shipping. Irs tax forms 2010 Travelers. Irs tax forms 2010   Travelers must file FinCEN Form 105 with the Customs officer in charge at any Customs port of entry or departure, when entering or departing the United States. Irs tax forms 2010 Penalties. Irs tax forms 2010   Civil and criminal penalties are provided for failing to file a report, filing a report containing material omissions or misstatements, or filing a false or fraudulent report. Irs tax forms 2010 Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture. Irs tax forms 2010 More information. Irs tax forms 2010   More information regarding the filing of FinCEN Form 105 can be found in the instructions on the back of the form. Irs tax forms 2010 Form 8938 You may have to file Form 8938, Statement of Specified Foreign Financial Assets, to report the ownership of specified foreign financial asset(s) if you are one of the following individuals. Irs tax forms 2010 A resident alien of the United States for any part of the tax year. Irs tax forms 2010 A resident alien of the United States who elects to be treated as a resident of a foreign country under the provisions of a U. Irs tax forms 2010 S. Irs tax forms 2010 income tax treaty. Irs tax forms 2010 See Effect of Tax Treaties in chapter 1. Irs tax forms 2010 A nonresident alien who makes an election to be treated as a resident alien for purposes of filing a joint income tax return. Irs tax forms 2010 See chapter 1 for information about this election. Irs tax forms 2010 A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico. Irs tax forms 2010 See Publication 570, Tax Guide for Individuals With Income From U. Irs tax forms 2010 S. Irs tax forms 2010 Possessions, for a definition of bona fide resident. Irs tax forms 2010 You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting threshold”). Irs tax forms 2010 The reporting threshold varies depending on whether you live in the United States, are married, or file a joint income tax return with your spouse. Irs tax forms 2010 Specified foreign financial assets include any financial account maintained by a foreign financial institution and, to the extent held for investment, any stock, securities, or any other interest in a foreign entity and any financial instrument or contract with an issuer or counterparty that is not a U. Irs tax forms 2010 S. Irs tax forms 2010 person. Irs tax forms 2010 You may have to pay penalties if you are required to file Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset. Irs tax forms 2010 More information about the filing of Form 8938 can be found in the separate instructions for Form 8938. Irs tax forms 2010 Penalties The law provides penalties for failure to file returns or pay taxes as required. Irs tax forms 2010 Civil Penalties If you do not file your return and pay your tax by the due date, you may have to pay a penalty. Irs tax forms 2010 You may also have to pay a penalty if you substantially understate your tax, file a frivolous tax submission, or fail to supply your taxpayer identification number. Irs tax forms 2010 If you provide fraudulent information on your return, you may have to pay a civil fraud penalty. Irs tax forms 2010 Filing late. Irs tax forms 2010   If you do not file your return by the due date (including extensions), you may have to pay a failure-to-file penalty. Irs tax forms 2010 The penalty is based on the tax not paid by the due date (without regard to extensions). Irs tax forms 2010 The penalty is usually 5% for each month or part of a month that a return is late, but not more than 25%. Irs tax forms 2010 Fraud. Irs tax forms 2010   If your failure to file is due to fraud, the penalty is 15% for each month or part of a month that your return is late, up to a maximum of 75%. Irs tax forms 2010 Return over 60 days late. Irs tax forms 2010   If you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Irs tax forms 2010 Exception. Irs tax forms 2010   You will not have to pay the penalty if you show that you failed to file on time because of reasonable cause and not because of willful neglect. Irs tax forms 2010 Paying tax late. Irs tax forms 2010   You will have to pay a failure-to-pay penalty of ½ of 1% (. Irs tax forms 2010 50%) of your unpaid taxes for each month, or part of a month, after the due date that the tax is not paid. Irs tax forms 2010 This penalty does not apply during the automatic 6-month extension of time to file period, if you paid at least 90% of your actual tax liability on or before the due date of your return and pay the balance when you file the return. Irs tax forms 2010   The monthly rate of the failure-to-pay penalty is half the usual rate (. Irs tax forms 2010 25% instead of . Irs tax forms 2010 50%) if an installment agreement is in effect for that month. Irs tax forms 2010 You must have filed your return by the due date (including extensions) to qualify for this reduced penalty. Irs tax forms 2010   If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at least 10 days after the day that the notice is issued. Irs tax forms 2010 If a notice and demand for immediate payment is issued, the rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued. Irs tax forms 2010   This penalty cannot be more than 25% of your unpaid tax. Irs tax forms 2010 You will not have to pay the penalty if you can show that you had a good reason for not paying your tax on time. Irs tax forms 2010 Combined penalties. Irs tax forms 2010   If both the failure-to-file penalty and the failure-to-pay penalty (discussed earlier) apply in any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. Irs tax forms 2010 However, if you file your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $135 or 100% of the unpaid tax. Irs tax forms 2010 Accuracy-related penalty. Irs tax forms 2010   You may have to pay an accuracy-related penalty if you underpay your tax because: You show negligence or disregard of rules or regulations, You substantially understate your income tax, You claim tax benefits for a transaction that lacks economic substance, or You fail to disclose a foreign financial asset. Irs tax forms 2010 The penalty is equal to 20% of the underpayment. Irs tax forms 2010 The penalty is 40% of any portion of the underpayment that is attributable to an undisclosed noneconomic substance transaction or an undisclosed foreign financial asset transaction. Irs tax forms 2010 The penalty will not be figured on any part of an underpayment on which the fraud penalty (discussed later) is charged. Irs tax forms 2010 Negligence or disregard. Irs tax forms 2010   The term “negligence” includes a failure to make a reasonable attempt to comply with the tax law or to exercise ordinary and reasonable care in preparing a return. Irs tax forms 2010 Negligence also includes failure to keep adequate books and records. Irs tax forms 2010 You will not have to pay a negligence penalty if you have a reasonable basis for a position you took. Irs tax forms 2010   The term “disregard” includes any careless, reckless, or intentional disregard. Irs tax forms 2010 Adequate disclosure. Irs tax forms 2010   You can avoid the penalty for disregard of rules or regulations if you adequately disclose on your return a position that has at least a reasonable basis. Irs tax forms 2010 See Disclosure statement , later. Irs tax forms 2010   This exception will not apply to an item that is attributable to a tax shelter. Irs tax forms 2010 In addition, it will not apply if you fail to keep adequate books and records, or substantiate items properly. Irs tax forms 2010 Substantial understatement of income tax. Irs tax forms 2010   You understate your tax if the tax shown on your return is less than the correct tax. Irs tax forms 2010 The understatement is substantial if it is more than the larger of 10% of the correct tax or $5,000. Irs tax forms 2010 However, the amount of the understatement is reduced to the extent the understatement is due to: Substantial authority, or Adequate disclosure and a reasonable basis. Irs tax forms 2010   If an item on your return is attributable to a tax shelter, there is no reduction for an adequate disclosure. Irs tax forms 2010 However, there is a reduction for a position with substantial authority, but only if you reasonably believed that your tax treatment was more likely than not the proper treatment. Irs tax forms 2010 Substantial authority. Irs tax forms 2010   Whether there is or was substantial authority for the tax treatment of an item depends on the facts and circumstances. Irs tax forms 2010 Consideration will be given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal Revenue Bulletin that involve the same or similar circumstances as yours. Irs tax forms 2010 Disclosure statement. Irs tax forms 2010   To adequately disclose the relevant facts about your tax treatment of an item, use Form 8275, Disclosure Statement. Irs tax forms 2010 You must also have a reasonable basis for treating the item the way you did. Irs tax forms 2010   In cases of substantial understatement only, items that meet the requirements of Revenue Procedure 2012-51, 2012-51 IRB 719 (or later update) are considered adequately disclosed on your return without filing Form 8275. Irs tax forms 2010   Use Form 8275-R, Regulation Disclosure Statement, to disclose items or positions contrary to regulations. Irs tax forms 2010 Transaction lacking economic substance. Irs tax forms 2010   For more information on economic substance, see section 7701(o). Irs tax forms 2010 Foreign financial asset. Irs tax forms 2010   For more information on undisclosed foreign financial assets, see section 6662(j) or the Instructions for Form 8938. Irs tax forms 2010 Reasonable cause. Irs tax forms 2010   You will not have to pay a penalty if you show a good reason (reasonable cause) for the way you treated an item. Irs tax forms 2010 You must also show that you acted in good faith. Irs tax forms 2010 This does not apply to a transaction that lacks economic substance. Irs tax forms 2010 Filing erroneous claim for refund or credit. Irs tax forms 2010   You may have to pay a penalty if you file an erroneous claim for refund or credit. Irs tax forms 2010 The penalty is equal to 20% of the disallowed amount of the claim, unless you can show a reasonable basis for the way you treated an item. Irs tax forms 2010 However, any disallowed amount due to a transaction that lacks economic substance will not be treated as having a reasonable basis. Irs tax forms 2010 The penalty will not be figured on any part of the disallowed amount of the claim that relates to the earned income credit or on which the accuracy-related or fraud penalties are charged. Irs tax forms 2010 Frivolous tax submission. Irs tax forms 2010   You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. Irs tax forms 2010 A frivolous tax return is one that does not include enough information to figure the correct tax or that contains information clearly showing that the tax you reported is substantially incorrect. Irs tax forms 2010 For more information on frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see Notice 2010-33, 2010-17 IRB 609 available at www. Irs tax forms 2010 irs. Irs tax forms 2010 gov/irb/2010-17_irb/ar13. Irs tax forms 2010 html. Irs tax forms 2010   You will have to pay the penalty if you filed this kind of return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal tax laws. Irs tax forms 2010 This includes altering or striking out the preprinted language above the space provided for your signature. Irs tax forms 2010   This penalty is added to any other penalty provided by law. Irs tax forms 2010 Fraud. Irs tax forms 2010   If there is any underpayment of tax on your return due to fraud, a penalty of 75% of the underpayment due to fraud will be added to your tax. Irs tax forms 2010 Failure to supply taxpayer identification number. Irs tax forms 2010   If you do not include your social security number (SSN) or individual taxpayer identification number (ITIN) or the SSN or ITIN of another person where required on a return, statement, or other document, you will be subject to a penalty of $50 for each failure. Irs tax forms 2010 You will also be subject to a penalty of $50 if you do not give your SSN or ITIN to another person when it is required on a return, statement, or other document. Irs tax forms 2010   For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. Irs tax forms 2010 The number must be shown on the Form 1099-INT or other statement the bank sends you. Irs tax forms 2010 If you do not give the bank your SSN or ITIN, you will be subject to the $50 penalty. Irs tax forms 2010 (You also may be subject to “backup” withholding of income tax. Irs tax forms 2010 )   You will not have to pay the penalty if you are able to show that the failure was due to reasonable cause and not willful neglect. Irs tax forms 2010 Criminal Penalties You may be subject to criminal prosecution (brought to trial) for actions such as: Tax evasion, Willful failure to file a return, supply information, or pay any tax due, Fraud and false statements, or Preparing and filing a fraudulent return. Irs tax forms 2010 Prev  Up  Next   Home   More Online Publications
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The Irs Tax Forms 2010

Irs tax forms 2010 Publication 929 - Main Content Table of Contents Part 1. Irs tax forms 2010 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. Irs tax forms 2010 Designated as representative. Irs tax forms 2010 IRS notice. Irs tax forms 2010 Standard DeductionStandard Deduction of Zero Dependent's Own Exemption Withholding From WagesExceptions. Irs tax forms 2010 Part 2. Irs tax forms 2010 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. Irs tax forms 2010 Figuring the Child's Net Unearned Income (Form 8615, Part I) Step 2. Irs tax forms 2010 Figuring a Tentative Tax at the Parent's Tax Rate (Form 8615, Part II) Step 3. Irs tax forms 2010 Figuring the Child's Tax (Form 8615, Part III) Alternative Minimum Tax Illustrated Example Part 1. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 See Other Filing Requirements, later. Irs tax forms 2010 The following sections apply to dependents with: Earned income only, Unearned income only, and Both earned and unearned income. Irs tax forms 2010  To find out whether a dependent must file, read the section that applies, or use Table 1. Irs tax forms 2010 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. Irs tax forms 2010 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). Irs tax forms 2010 Example. Irs tax forms 2010 William is 16. Irs tax forms 2010 His mother claims an exemption for him on her income tax return. Irs tax forms 2010 He worked part time on weekends during the school year and full time during the summer. Irs tax forms 2010 He earned $7,000 in wages. Irs tax forms 2010 He did not have any unearned income. Irs tax forms 2010 He must file a tax return because he has earned income only and his gross income is more than $6,100. Irs tax forms 2010 If he is blind, he does not have to file a return because his gross income is not more than $7,600. Irs tax forms 2010 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. Irs tax forms 2010 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). Irs tax forms 2010 Example. Irs tax forms 2010 Sarah is 18 and single. Irs tax forms 2010 Her parents can claim an exemption for her on their income tax return. Irs tax forms 2010 She received $1,970 of taxable interest and dividend income. Irs tax forms 2010 She did not work during the year. Irs tax forms 2010 She must file a tax return because she has unearned income only and her gross income is more than $1,000. Irs tax forms 2010 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. Irs tax forms 2010 Election to report child's unearned income on parent's return. Irs tax forms 2010   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. Irs tax forms 2010 See Parent's Election To Report Child's Interest and Dividends in Part 2. Irs tax forms 2010 If the parent makes this election, the child does not have to file a return. Irs tax forms 2010 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. Irs tax forms 2010 Filing Requirement Worksheet for Most Dependents 1. Irs tax forms 2010 Enter dependent's earned income plus $350     2. Irs tax forms 2010 Minimum amount   $1,000 3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger amount     4. Irs tax forms 2010 Maximum amount   6,100 5. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount     6. Irs tax forms 2010 Enter the dependent's gross income. Irs tax forms 2010 If line 6 is more than line 5, the dependent must file an income tax return. Irs tax forms 2010 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. Irs tax forms 2010       Table 1. Irs tax forms 2010 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. Irs tax forms 2010   See the definitions of “dependent,”“earned income,”“unearned income,” and “gross income” in the Glossary. Irs tax forms 2010   Single dependents—Were you either age 65 or older or blind?     No. Irs tax forms 2010 You must file a return if any of the following apply. Irs tax forms 2010       Your unearned income was over $1,000. Irs tax forms 2010 Your earned income was over $6,100. Irs tax forms 2010 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Irs tax forms 2010         Yes. Irs tax forms 2010 You must file a return if any of the following apply. Irs tax forms 2010     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). Irs tax forms 2010       Married dependents—Were you either age 65 or older or blind?     No. Irs tax forms 2010 You must file a return if any of the following apply. Irs tax forms 2010       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs tax forms 2010 Your unearned income was over $1,000. Irs tax forms 2010 Your earned income was over $6,100. Irs tax forms 2010 Your gross income was more than the larger of—       $1,000, or Your earned income (up to $5,750) plus $350. Irs tax forms 2010       Yes. Irs tax forms 2010 You must file a return if any of the following apply. Irs tax forms 2010       Your gross income was at least $5 and your spouse files a separate return and itemizes deductions. Irs tax forms 2010 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). Irs tax forms 2010       Example 1. Irs tax forms 2010 Joe is 20, single, not blind, and a full-time college student. Irs tax forms 2010 He does not provide more than half of his own support, and his parents claim an exemption for him on their income tax return. Irs tax forms 2010 He received $200 taxable interest income and earned $2,750 from a part-time job. Irs tax forms 2010 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). Irs tax forms 2010 Filled-in Example 1 Filing Requirement Worksheet  for Most Dependents 1. Irs tax forms 2010 Enter dependent's earned income plus $350   $ 3,100 2. Irs tax forms 2010 Minimum amount   1,000 3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger amount   3,100 4. Irs tax forms 2010 Maximum amount   6,100 5. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount   3,100 6. Irs tax forms 2010 Enter the dependent's gross income. Irs tax forms 2010 If line 6 is more than line 5, the dependent must file an income tax return. Irs tax forms 2010 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. Irs tax forms 2010   $ 2,950   Example 2. Irs tax forms 2010 The facts are the same as in Example 1 except that Joe had $600 taxable interest income. Irs tax forms 2010 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). Irs tax forms 2010 Filled-in Example 2 Filing Requirement Worksheet for Most Dependents 1. Irs tax forms 2010 Enter dependent's earned income plus $350   $ 3,100 2. Irs tax forms 2010 Minimum amount   1,000 3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger amount   3,100 4. Irs tax forms 2010 Maximum amount   6,100 5. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount   3,100 6. Irs tax forms 2010 Enter the dependent's gross income. Irs tax forms 2010 If line 6 is more than line 5, the dependent must file an income tax return. Irs tax forms 2010 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. Irs tax forms 2010   $ 3,350   Age 65 or older or blind. Irs tax forms 2010 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. Irs tax forms 2010 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Irs tax forms 2010 Enter dependent's earned income plus $350     2. Irs tax forms 2010 Minimum amount   $1,000 3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger amount     4. Irs tax forms 2010 Maximum amount   6,100 5. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount     6. Irs tax forms 2010 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. Irs tax forms 2010 Add lines 5 and 6. Irs tax forms 2010 Enter the total     8. Irs tax forms 2010 Enter the dependent's gross income. Irs tax forms 2010 If line 8 is more than line 7, the dependent must file an income tax return. Irs tax forms 2010 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. Irs tax forms 2010 The facts are the same as in Example 2 except that Joe is also blind. Irs tax forms 2010 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). Irs tax forms 2010   Filled-in Example 3 Filing Requirement Worksheet  for Dependents Who Are Age 65 or Older or Blind 1. Irs tax forms 2010 Enter dependent's earned income plus $350   $3,100 2. Irs tax forms 2010 Minimum amount   1,000 3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger amount   3,100 4. Irs tax forms 2010 Maximum amount   6,100 5. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount   3,100 6. Irs tax forms 2010 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. Irs tax forms 2010 Add lines 5 and 6. Irs tax forms 2010 Enter the total   4,600 8. Irs tax forms 2010 Enter the dependent's gross income. Irs tax forms 2010 If line 8 is more than line 7, the dependent must file an income tax return. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 But if the dependent is filing a return only because of this tax, the dependent can file Form 5329 by itself. Irs tax forms 2010 A dependent must also file a tax return if he or she: Had wages of $108. Irs tax forms 2010 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. Irs tax forms 2010 Spouse itemizes. Irs tax forms 2010   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). Irs tax forms 2010 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. Irs tax forms 2010 Income tax was withheld from his or her income. Irs tax forms 2010 He or she qualifies for the earned income credit, additional child tax credit, health coverage tax credit, or refundable American opportunity education credit. Irs tax forms 2010 See the tax return instructions to find out who qualifies for these credits. Irs tax forms 2010  By filing a return, the dependent can get a refund. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 Signing the child's return. Irs tax forms 2010   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. Irs tax forms 2010 ” Authority of parent or guardian. Irs tax forms 2010   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. Irs tax forms 2010   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. Irs tax forms 2010 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. Irs tax forms 2010 Third party designee. Irs tax forms 2010   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. Irs tax forms 2010 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. Irs tax forms 2010   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. Irs tax forms 2010 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. Irs tax forms 2010 See the return instructions for more information. Irs tax forms 2010 Designated as representative. Irs tax forms 2010   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. Irs tax forms 2010 Form 2848, Power of Attorney and Declaration of Representative, is used to designate a child's representative. Irs tax forms 2010 See Publication 947, Practice Before the IRS and Power of Attorney, for more information. Irs tax forms 2010   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. Irs tax forms 2010 IRS notice. Irs tax forms 2010   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. Irs tax forms 2010 The notice will show who to contact. Irs tax forms 2010 The IRS will try to resolve the matter with the parent(s) or guardian(s) of the child consistent with their authority. Irs tax forms 2010 Child's earnings. Irs tax forms 2010   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. Irs tax forms 2010 This is true even if, under state law, the parent has the right to the earnings and may actually have received them. Irs tax forms 2010 If the child does not pay the tax due on this income, the parent may be liable for the tax. Irs tax forms 2010 Child's expenses. Irs tax forms 2010   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. Irs tax forms 2010 Example. Irs tax forms 2010 You made payments on your child's behalf that are deductible as a business expense and a charitable contribution. Irs tax forms 2010 You made the payments out of your child's earnings. Irs tax forms 2010 These items can be deducted only on the child's return. Irs tax forms 2010 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). Irs tax forms 2010 However, the standard deduction may be higher for a dependent who: Is 65 or older, or Is blind. Irs tax forms 2010 Certain dependents cannot claim any standard deduction. Irs tax forms 2010 See Standard Deduction of Zero , later. Irs tax forms 2010 Worksheet 1. Irs tax forms 2010   Use Worksheet 1 to figure the dependent's standard deduction. Irs tax forms 2010 Worksheet 1. Irs tax forms 2010 Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse, if filing jointly) as a dependent. Irs tax forms 2010 If you were 65 or older and/or blind, check the correct number of boxes below. Irs tax forms 2010 Put the total number of boxes checked in box c and go to line 1. Irs tax forms 2010 a. Irs tax forms 2010 You 65 or older   Blind   b. Irs tax forms 2010 Your spouse, if claiming  spouse's exemption 65 or older   Blind   c. Irs tax forms 2010 Total boxes checked         1. Irs tax forms 2010 Enter your earned income (defined below) plus $350. Irs tax forms 2010 If none, enter -0-. Irs tax forms 2010 1. Irs tax forms 2010     2. Irs tax forms 2010 Minimum amount. Irs tax forms 2010   2. Irs tax forms 2010 $1,000   3. Irs tax forms 2010 Compare lines 1 and 2. Irs tax forms 2010 Enter the larger of the two amounts here. Irs tax forms 2010 3. Irs tax forms 2010     4. Irs tax forms 2010 Enter on line 4 the amount shown below for your filing status. Irs tax forms 2010       Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 4. Irs tax forms 2010     5. Irs tax forms 2010 Standard deduction. Irs tax forms 2010         a. Irs tax forms 2010 Compare lines 3 and 4. Irs tax forms 2010 Enter the smaller amount here. Irs tax forms 2010 If under 65 and not blind, stop here. Irs tax forms 2010 This is your standard deduction. Irs tax forms 2010 Otherwise, go on to line 5b. Irs tax forms 2010 5a. Irs tax forms 2010     b. Irs tax forms 2010 If 65 or older or blind, multiply $1,500 ($1,200 if married) by the number in box c above. Irs tax forms 2010 Enter the result here. Irs tax forms 2010 5b. Irs tax forms 2010     c. Irs tax forms 2010 Add lines 5a and 5b. Irs tax forms 2010 This is your standard deduction for 2013. Irs tax forms 2010 5c. Irs tax forms 2010     Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. Irs tax forms 2010 It also includes any amount received as a scholarship that you must include in income. Irs tax forms 2010   Example 1. Irs tax forms 2010 Michael is single, age 15, and not blind. Irs tax forms 2010 His parents can claim him as a dependent on their tax return. Irs tax forms 2010 He has taxable interest income of $800 and wages of $150. Irs tax forms 2010 He enters $500 (his earned income plus $350) on line 1 of Worksheet 1. Irs tax forms 2010 On line 3, he enters $1,000, the larger of $500 or $1,000. Irs tax forms 2010 Michael enters $6,100 on line 4. Irs tax forms 2010 On line 5a, he enters $1,000, the smaller of $1,000 or $6,100. Irs tax forms 2010 His standard deduction is $1,000. Irs tax forms 2010 Example 2. Irs tax forms 2010 Judy, a full-time student, is single, age 22, and not blind. Irs tax forms 2010 Her parents can claim her as a dependent on their tax return. Irs tax forms 2010 She has dividend income of $275 and wages of $2,500. Irs tax forms 2010 She enters $2,850 (her earned income plus $350) on line 1 of Worksheet 1. Irs tax forms 2010 On line 3, she enters $2,850, the larger of $2,850 or $1,000. Irs tax forms 2010 She enters $6,100 on line 4. Irs tax forms 2010 On line 5a, she enters $2,850 (the smaller of $2,850 or $6,100) as her standard deduction. Irs tax forms 2010 Example 3. Irs tax forms 2010 Amy, who is single, is claimed as a dependent on her parents' tax return. Irs tax forms 2010 She is 18 years old and blind. Irs tax forms 2010 She has taxable interest income of $1,000 and wages of $2,000. Irs tax forms 2010 She enters $2,350 (her earned income plus $350) on line 1 of Worksheet 1. Irs tax forms 2010 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. Irs tax forms 2010 Because Amy is blind, she checks the box for blindness and enters “1” in box c at the top of Worksheet 1. Irs tax forms 2010 She enters $1,500 (the number in box c times $1,500) on line 5b. Irs tax forms 2010 Her standard deduction on line 5c is $3,850 ($2,350 + $1,500). Irs tax forms 2010 Standard Deduction of Zero The standard deduction for the following dependents is zero. Irs tax forms 2010 A married dependent filing a separate return whose spouse itemizes deductions. Irs tax forms 2010 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. Irs tax forms 2010 A nonresident or dual-status alien dependent, unless the dependent is married to a U. Irs tax forms 2010 S. Irs tax forms 2010 citizen or resident alien at the end of the year and chooses to be treated as a U. Irs tax forms 2010 S. Irs tax forms 2010 resident for the year. Irs tax forms 2010 See Publication 519, U. Irs tax forms 2010 S. Irs tax forms 2010 Tax Guide for Aliens, for information on making this choice. Irs tax forms 2010 Example. Irs tax forms 2010 Jennifer, who is a dependent of her parents, is entitled to file a joint return with her husband. Irs tax forms 2010 However, her husband elects to file a separate return and itemize his deductions. Irs tax forms 2010 Because he itemizes, Jennifer's standard deduction on her return is zero. Irs tax forms 2010 She can, however, itemize any of her allowable deductions. Irs tax forms 2010 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. Irs tax forms 2010 This is true even if the other taxpayer does not actually claim the exemption. Irs tax forms 2010 Example. Irs tax forms 2010 James and Barbara can claim their child, Ben, as a dependent on their return. Irs tax forms 2010 Ben is a college student who works during the summer and must file a tax return. Irs tax forms 2010 Ben cannot claim his own exemption on his return. Irs tax forms 2010 This is true even if James and Barbara do not claim him as a dependent on their return. Irs tax forms 2010 Withholding From Wages Employers generally withhold federal income tax, social security tax, and Medicare tax from an employee's wages. Irs tax forms 2010 If the employee claims exemption from withholding on Form W-4, the employer will not withhold federal income tax. Irs tax forms 2010 The exemption from withholding does not apply to social security and Medicare taxes. Irs tax forms 2010 Conditions for exemption from withholding. Irs tax forms 2010   An employee can claim exemption from withholding for 2014 only if he or she meets both of the following conditions. Irs tax forms 2010 For 2013, the employee had a right to a refund of all federal income tax withheld because he or she had no tax liability. Irs tax forms 2010 For 2014, the employee expects a refund of all federal income tax withheld because he or she expects to have no tax liability. Irs tax forms 2010 Dependents. Irs tax forms 2010   An employee who is a dependent ordinarily cannot claim exemption from withholding if both of the following are true. Irs tax forms 2010 The employee's gross income will be more than $1,000, the minimum standard deduction for 2014. Irs tax forms 2010 The employee's unearned income will be more than $350. Irs tax forms 2010 Exceptions. Irs tax forms 2010   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. Irs tax forms 2010 The above exceptions do not apply to supplemental wages greater than $1,000,000. Irs tax forms 2010 For more information, see Exemption From Withholding in chapter 1 of Publication 505. Irs tax forms 2010 Example. Irs tax forms 2010 Guy is 17 and a student. Irs tax forms 2010 During the summer he works part time at a grocery store. Irs tax forms 2010 He expects to earn about $1,200 this year. Irs tax forms 2010 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. Irs tax forms 2010 The only other income he expects during the year is $375 interest on a savings account. Irs tax forms 2010 He expects that his parents will be able to claim him as a dependent on their tax return. Irs tax forms 2010 He is not blind and will not claim adjustments to income, itemized deductions, a higher standard deduction, or tax credits on his return. Irs tax forms 2010 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. Irs tax forms 2010 Claiming exemption from withholding. Irs tax forms 2010    To claim exemption from withholding, an employee must enter “Exempt” in the space provided on Form W-4, line 7. Irs tax forms 2010 The employee must complete the rest of the form, as explained in the form instructions, and give it to his or her employer. Irs tax forms 2010 Renewing an exemption from withholding. Irs tax forms 2010   An exemption from withholding is good for only one year. Irs tax forms 2010 An employee must file a new Form W-4 by February 15 each year to continue the exemption. Irs tax forms 2010 Part 2. Irs tax forms 2010 Tax on Unearned Income of Certain Children The two rules that follow may affect the tax on the unearned income of certain children. Irs tax forms 2010 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. Irs tax forms 2010 (See Parent's Election To Report Child's Interest and Dividends , later. Irs tax forms 2010 ) 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. Irs tax forms 2010 (See Tax for Certain Children Who Have Unearned Income , later. Irs tax forms 2010 ) For these rules, the term “child” includes a legally adopted child and a stepchild. Irs tax forms 2010 These rules apply whether or not the child is a dependent. Irs tax forms 2010 These rules do not apply if neither of the child's parents were living at the end of the year. Irs tax forms 2010 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. Irs tax forms 2010 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 . Irs tax forms 2010 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. Irs tax forms 2010 Only the parent whose tax return is used can make the election described under Parent's Election To Report Child's Interest and Dividends . Irs tax forms 2010 Parents are married. Irs tax forms 2010   If the child's parents file separate returns, use the return of the parent with the greater taxable income. Irs tax forms 2010 Parents not living together. Irs tax forms 2010   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. Irs tax forms 2010 If the custodial parent is not considered unmarried, use the return of the parent with the greater taxable income. Irs tax forms 2010   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. Irs tax forms 2010 Parents are divorced. Irs tax forms 2010   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. Irs tax forms 2010 Custodial parent remarried. Irs tax forms 2010   If the custodial parent has remarried, the stepparent (rather than the noncustodial parent) is treated as the child's other parent. Irs tax forms 2010 Therefore, if the custodial parent and the stepparent file a joint return, use that joint return. Irs tax forms 2010 Do not use the return of the noncustodial parent. Irs tax forms 2010   If the custodial parent and the stepparent are married, but file separate returns, use the return of the one with the greater taxable income. Irs tax forms 2010 If the custodial parent and the stepparent are married but not living together, the earlier discussion under Parents not living together applies. Irs tax forms 2010 Parents never married. Irs tax forms 2010   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. Irs tax forms 2010 If the parents did not live together all year, the rules explained earlier under Parents are divorced apply. Irs tax forms 2010 Widowed parent remarried. Irs tax forms 2010   If a widow or widower remarries, the new spouse is treated as the child's other parent. Irs tax forms 2010 The rules explained earlier under Custodial parent remarried apply. Irs tax forms 2010 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. Irs tax forms 2010 If you do, your child will not have to file a return. Irs tax forms 2010 You can make this election only if all the following conditions are met. Irs tax forms 2010 Your child was under age 19 (or under age 24 if a full-time student) at the end of the year. Irs tax forms 2010 Your child had income only from interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends). Irs tax forms 2010 The child's gross income was less than $10,000. Irs tax forms 2010 The child is required to file a return unless you make this election. Irs tax forms 2010 The child does not file a joint return for the year. Irs tax forms 2010 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. Irs tax forms 2010 No federal income tax was withheld from your child's income under the backup withholding rules. Irs tax forms 2010 You are the parent whose return must be used when applying the special tax rules for children. Irs tax forms 2010 (See Which Parent's Return To Use , earlier. Irs tax forms 2010 ) These conditions are also shown in Figure 1. Irs tax forms 2010 Certain January 1 birthdays. Irs tax forms 2010   A child born on January 1, 1995, is considered to be age 19 at the end of 2013. Irs tax forms 2010 You cannot make this election for such a child unless the child was a full-time student. Irs tax forms 2010   A child born on January 1, 1990, is considered to be age 24 at the end of 2013. Irs tax forms 2010 You cannot make this election for such a child. Irs tax forms 2010 How to make the election. Irs tax forms 2010    Make the election by attaching Form 8814 to your Form 1040 or Form 1040NR. Irs tax forms 2010 (If you make this election, you cannot file Form 1040A or Form 1040EZ. Irs tax forms 2010 ) Attach a separate Form 8814 for each child for whom you make the election. Irs tax forms 2010 You can make the election for one or more children and not for others. Irs tax forms 2010 Effect of Making the Election The federal income tax on your child's income may be more if you make the Form 8814 election. Irs tax forms 2010 Rate may be higher. Irs tax forms 2010   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. Irs tax forms 2010 This is because the tax rate on the child's income between $1,000 and $2,000 is 10% if you make this election. Irs tax forms 2010 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. Irs tax forms 2010 Deductions you cannot take. Irs tax forms 2010   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. Irs tax forms 2010 The additional standard deduction if the child is blind. Irs tax forms 2010 The deduction for a penalty on an early withdrawal of your child's savings. Irs tax forms 2010 Itemized deductions (such as your child's investment expenses or charitable contributions). Irs tax forms 2010 Figure 1. Irs tax forms 2010 Can You Include Your Child's Income On Your Tax Return? Please click here for the text description of the image. Irs tax forms 2010 Figure 1. Irs tax forms 2010 Can You Include Your Child's Income On Your Tax Return? Deductible investment interest. Irs tax forms 2010   If you use Form 8814, your child's unearned income is considered your unearned income. Irs tax forms 2010 To figure the limit on your deductible investment interest, add the child's unearned income to yours. Irs tax forms 2010 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. Irs tax forms 2010 Alternative minimum tax. Irs tax forms 2010    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. Irs tax forms 2010 If it is, you must include it with your own tax preference items when figuring your AMT. Irs tax forms 2010 See Form 6251, Alternative Minimum Tax—Individuals, and its instructions for details. Irs tax forms 2010 Reduced deductions or credits. Irs tax forms 2010   If you use Form 8814, your increased adjusted gross income may reduce certain deductions or credits on your return, including the following. Irs tax forms 2010 Deduction for contributions to a traditional individual retirement arrangement (IRA). Irs tax forms 2010 Deduction for student loan interest. Irs tax forms 2010 Itemized deductions for medical expenses, casualty and theft losses, and certain miscellaneous expenses. Irs tax forms 2010 Credit for child and dependent care expenses. Irs tax forms 2010 Child tax credit. Irs tax forms 2010 Education tax credits. Irs tax forms 2010 Earned income credit. Irs tax forms 2010 Penalty for underpayment of estimated tax. Irs tax forms 2010   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. Irs tax forms 2010 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. Irs tax forms 2010 Get Publication 505 for more information. Irs tax forms 2010 Figuring Child's Income Use Form 8814, Part I, to figure your child's interest and dividend income to report on your return. Irs tax forms 2010 Only the amount over $2,000 is added to your income. Irs tax forms 2010 The amount over $2,000 is shown on Form 8814, line 6. Irs tax forms 2010 Unless the child's income includes qualified dividends or capital gain distributions (discussed next), the same amount is shown on Form 8814, line 12. Irs tax forms 2010 Include the amount from Form 8814, line 12, on Form 1040 or Form 1040NR, line 21. Irs tax forms 2010 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. Irs tax forms 2010 On the dotted line next to line 21, enter “Form 8814” and the total of the Form 8814, line 12 amounts. Irs tax forms 2010 Note. Irs tax forms 2010 The tax on the first $2,000 is figured on Form 8814, Part II. Irs tax forms 2010 See Figuring Additional Tax , later. Irs tax forms 2010 Qualified dividends. Irs tax forms 2010   Enter on Form 8814, line 2a, any ordinary dividends your child received. Irs tax forms 2010 This amount may include qualified dividends. Irs tax forms 2010 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. Irs tax forms 2010 For detailed information about qualified dividends, see Publication 550. Irs tax forms 2010   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. Irs tax forms 2010 You do not include these dividends on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Irs tax forms 2010   Enter the child's qualified dividends on Form 8814, line 2b. Irs tax forms 2010 But do not include this amount on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Irs tax forms 2010 Instead, include the amount from Form 8814, line 9, on Form 1040, lines 9a and 9b, or Form 1040NR, lines 10a and 10b. Irs tax forms 2010 (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. Irs tax forms 2010 ) Capital gain distributions. Irs tax forms 2010   Enter on Form 8814, line 3, any capital gain distributions your child received. Irs tax forms 2010 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. Irs tax forms 2010 You do not include it on Form 8814, line 12, or on line 21 of Form 1040 or Form 1040NR. Irs tax forms 2010   Include the amount from Form 8814, line 10, on Schedule D, line 13; Form 1040, line 13; or Form 1040NR, line 14, whichever applies. Irs tax forms 2010 (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. Irs tax forms 2010 ) Collectibles (28% rate) gain. Irs tax forms 2010    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. Irs tax forms 2010 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs tax forms 2010 The numerator is the part of the child's total capital gain distribution that is collectibles (28% rate) gain. Irs tax forms 2010 The denominator is the child's total capital gain distribution. Irs tax forms 2010 Enter the result on line 4 of the 28% Rate Gain Worksheet. Irs tax forms 2010 Unrecaptured section 1250 gain. Irs tax forms 2010   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. Irs tax forms 2010 Multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs tax forms 2010 The numerator is the part of the child's total capital gain distribution that is unrecaptured section 1250 gain. Irs tax forms 2010 The denominator is the child's total capital gain distribution. Irs tax forms 2010 Enter the result on the Unrecaptured Section 1250 Gain Worksheet, line 11. Irs tax forms 2010 Section 1202 gain. Irs tax forms 2010   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. Irs tax forms 2010 (For information about the exclusion, see chapter 4 of Publication 550. Irs tax forms 2010 ) To figure that part, multiply the child's capital gain distribution included on Schedule D, line 13, by a fraction. Irs tax forms 2010 The numerator is the part of the child's total capital gain distribution that is section 1202 gain. Irs tax forms 2010 The denominator is the child's total capital gain distribution. Irs tax forms 2010 Your section 1202 exclusion is generally 50% of the result, but may be subject to a limit. Irs tax forms 2010 In some cases, the exclusion is more than 50%. Irs tax forms 2010 See the instructions for Schedule D for details and information on how to report the exclusion amount. Irs tax forms 2010 Example. Irs tax forms 2010 Fred is 6 years old. Irs tax forms 2010 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. Irs tax forms 2010 (None of the distributions were reported on Form 1099-DIV as unrecaptured section 1250 gain, section 1202 gain, or collectibles (28% rate) gain. Irs tax forms 2010 ) All of the ordinary dividends are qualified dividends. Irs tax forms 2010 He has no other income and is not subject to backup withholding. Irs tax forms 2010 No estimated tax payments were made under his name and social security number. Irs tax forms 2010 Fred's parents elect to include Fred's income on their tax return instead of filing a return for him. Irs tax forms 2010 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. Irs tax forms 2010 They leave lines 1a and 1b of Form 8814 blank because Fred does not have any interest income. Irs tax forms 2010 They enter his ordinary dividends of $1,575 on lines 2a and 2b because all of Fred's ordinary dividends are qualified dividends. Irs tax forms 2010 They enter the amount of Fred's capital gain distributions, $525, on line 3. Irs tax forms 2010 Next, they add the amounts on lines 1a, 2a, and 3 and enter the result, $2,100, on line 4. Irs tax forms 2010 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. Irs tax forms 2010 This is the total amount from Form 8814 to be reported on their return. Irs tax forms 2010 Next, they figure how much of this amount is qualified dividends and how much is capital gain distributions. Irs tax forms 2010 They divide the amount on line 2b, $1,575, by the amount on line 4, $2,100. Irs tax forms 2010 They enter the result, . Irs tax forms 2010 75, on line 7. Irs tax forms 2010 They divide the amount on line 3, $525, by the amount on line 4, $2,100. Irs tax forms 2010 They enter the result, . Irs tax forms 2010 25, on line 8. Irs tax forms 2010 They multiply the amount on line 6, $100, by the decimal on line 7, . Irs tax forms 2010 75, and enter the result, $75, on line 9. Irs tax forms 2010 They multiply the amount on line 6, $100, by the decimal on line 8, . Irs tax forms 2010 25, and enter the result, $25, on line 10. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 They enter $100 ($75 + $25) on line 11 and -0- ($100 – $100) on line 12. Irs tax forms 2010 Because the amount on line 12 is -0-, they do not include any amount from Form 8814 on their Form 1040, line 21. Irs tax forms 2010 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. Irs tax forms 2010 This tax is added to the tax figured on your income. Irs tax forms 2010 This additional tax is the smaller of: 10% x (your child's gross income − $1,000), or $100. Irs tax forms 2010 Include the amount from line 15 of all your Forms 8814 in the total on Form 1040, line 44, or Form 1040NR, line 42. Irs tax forms 2010 Check box a on Form 1040, line 44, or Form 1040NR, line 42. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 Attach the completed form to the child's Form 1040, Form 1040A, or Form 1040NR. Irs tax forms 2010 When Form 8615 must be filed. Irs tax forms 2010   Form 8615 must be filed for a child if all of the following statements are true. Irs tax forms 2010 The child's unearned income was more than $2,000. Irs tax forms 2010 The child is required to file a return for 2013. Irs tax forms 2010 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. Irs tax forms 2010 At least one of the child's parents was alive at the end of 2013. Irs tax forms 2010 The child does not file a joint return for 2013. Irs tax forms 2010 These conditions are also shown in Figure 2. Irs tax forms 2010 Certain January 1 birthdays. Irs tax forms 2010   Use the following chart to determine whether certain children with January 1 birthdays meet condition 3 under When Form 8615 must be filed. Irs tax forms 2010 IF a child was born on. Irs tax forms 2010 . Irs tax forms 2010 . Irs tax forms 2010 THEN, at the end of 2013, the child is considered to be. Irs tax forms 2010 . Irs tax forms 2010 . Irs tax forms 2010 January 1, 1996 18* January 1, 1995 19** January 1, 1990 24*** *This child is not under age 18. Irs tax forms 2010 The child meets condition 3 only if the child did not have earned income that was more than half of the child's support. Irs tax forms 2010  **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. Irs tax forms 2010  ***Do not use Form 8615 for this child. Irs tax forms 2010 Figure 2. Irs tax forms 2010 Do You Have To Use Form 8615 To Figure Your Child's Tax? Please click here for the text description of the image. Irs tax forms 2010 Figure 2. Irs tax forms 2010 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. Irs tax forms 2010 (If the parents filed a joint return, enter the name and social security number listed first on the joint return. Irs tax forms 2010 ) On line C, check the box for the parent's filing status. Irs tax forms 2010 See Which Parent's Return To Use, earlier, for information on which parent's return information must be used on Form 8615. Irs tax forms 2010 Parent with different tax year. Irs tax forms 2010   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. Irs tax forms 2010 Example. Irs tax forms 2010 Kimberly must use her mother's tax and taxable income to complete her Form 8615 for calendar year 2013 (January 1 – December 31). Irs tax forms 2010 Kimberly's mother files her tax return on a fiscal year basis (July 1 – June 30). Irs tax forms 2010 Kimberly must use the information on her mother's return for the tax year ending June 30, 2013, to complete her 2013 Form 8615. Irs tax forms 2010 Parent's return information not known timely. Irs tax forms 2010   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. Irs tax forms 2010   You can use any reasonable estimate. Irs tax forms 2010 This includes using information from last year's return. Irs tax forms 2010 If you use an estimated amount on Form 8615, enter “Estimated” on the line next to the amount. Irs tax forms 2010   When you get the correct information, file an amended return on Form 1040X, Amended U. Irs tax forms 2010 S. Irs tax forms 2010 Individual Income Tax Return. Irs tax forms 2010 Extension of time to file. Irs tax forms 2010   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. Irs tax forms 2010 S. Irs tax forms 2010 Individual Income Tax Return. Irs tax forms 2010 See the instructions for Form 4868 for details. Irs tax forms 2010    An extension of time to file is not an extension of time to pay. Irs tax forms 2010 You must make an accurate estimate of the tax for 2013. Irs tax forms 2010 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. Irs tax forms 2010 See Form 4868 and its instructions. Irs tax forms 2010 Parent's return information not available. Irs tax forms 2010   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). Irs tax forms 2010 How to request. Irs tax forms 2010   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. Irs tax forms 2010 (The IRS cannot process a request received before the end of the tax year. Irs tax forms 2010 )    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. Irs tax forms 2010   The request must contain all of the following. Irs tax forms 2010 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. Irs tax forms 2010 Proof of the child's age (for example, a copy of the child's birth certificate). Irs tax forms 2010 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). Irs tax forms 2010 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. Irs tax forms 2010    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. Irs tax forms 2010 Step 1. Irs tax forms 2010 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. Irs tax forms 2010 To do that, use Form 8615, Part I. Irs tax forms 2010 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. Irs tax forms 2010 Adjusted gross income is shown on Form 1040, line 38; Form 1040A, line 22; or Form 1040NR, line 37. Irs tax forms 2010 Form 1040EZ and Form 1040NR-EZ cannot be used if Form 8615 must be filed. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 Alternate Worksheet for Form 8615, Line 1 A. Irs tax forms 2010 Enter the amount from the child's Form 1040, line 22, or Form 1040NR, line 23   B. Irs tax forms 2010 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. Irs tax forms 2010 Enter this total as a positive number (greater than zero)   C. Irs tax forms 2010 Add line A and line B and  enter the total   D. Irs tax forms 2010 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. Irs tax forms 2010 Subtract line D from line C. Irs tax forms 2010 Enter the result here and on Form 8615, line 1   Unearned income defined. Irs tax forms 2010   Unearned income is generally all income other than salaries, wages, and other amounts received as pay for work actually performed. Irs tax forms 2010 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. Irs tax forms 2010 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). Irs tax forms 2010 Nontaxable income. Irs tax forms 2010   For this purpose, unearned income includes only amounts the child must include in gross income. Irs tax forms 2010 Nontaxable unearned income, such as tax-exempt interest and the nontaxable part of social security and pension payments, is not included. Irs tax forms 2010 Capital loss. Irs tax forms 2010   A child's capital losses are taken into account in figuring the child's unearned income. Irs tax forms 2010 Capital losses are first applied against capital gains. Irs tax forms 2010 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. Irs tax forms 2010 Any difference over $3,000 is carried to the next year. Irs tax forms 2010 Income from property received as a gift. Irs tax forms 2010   A child's unearned income includes all income produced by property belonging to the child. Irs tax forms 2010 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. Irs tax forms 2010   A child's unearned income includes income produced by property given as a gift to the child. Irs tax forms 2010 This includes gifts to the child from grandparents or any other person and gifts made under the Uniform Gift to Minors Act. Irs tax forms 2010 Example. Irs tax forms 2010 Amanda Black, age 13, received the following income. Irs tax forms 2010 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. Irs tax forms 2010 Amanda's unearned income is $2,100. Irs tax forms 2010 This is the total of the dividends ($800), taxable interest ($1,200), and capital gains reduced by capital losses ($300 − $200 = $100). Irs tax forms 2010 Her wages are earned (not unearned) income because they are received for work actually performed. Irs tax forms 2010 Her tax-exempt interest is not included because it is nontaxable. Irs tax forms 2010 Trust income. Irs tax forms 2010   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. Irs tax forms 2010   However, taxable distributions from a qualified disability trust are considered earned income for the purposes of completing Form 8615. Irs tax forms 2010 See the Form 8615 instructions for details. Irs tax forms 2010 Adjustment to income. Irs tax forms 2010   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. Irs tax forms 2010 Line 2 (Deductions) If the child does not itemize deductions on Schedule A (Form 1040 or Form 1040NR), enter $2,000 on line 2. Irs tax forms 2010 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. Irs tax forms 2010 Directly connected. Irs tax forms 2010   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. Irs tax forms 2010 These expenses include custodian fees and service charges, service fees to collect taxable interest and dividends, and certain investment counsel fees. Irs tax forms 2010    These expenses are added to certain other miscellaneous itemized deductions on Schedule A (Form 1040). Irs tax forms 2010 Only the amount greater than 2% of the child's adjusted gross income can be deducted. Irs tax forms 2010 See Publication 529, Miscellaneous Deductions, for more information. Irs tax forms 2010 Example 1. Irs tax forms 2010 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. Irs tax forms 2010 His adjusted gross income is $8,000, which is entered on Form 1040, line 38, and on Form 8615, line 1. Irs tax forms 2010 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. Irs tax forms 2010 Example 2. Irs tax forms 2010 Eleanor, age 8, has unearned income of $16,000 and an early withdrawal penalty of $100. Irs tax forms 2010 She has no other income. Irs tax forms 2010 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. Irs tax forms 2010 Her adjusted gross income, entered on line 1, is $15,900 ($16,000 − $100). Irs tax forms 2010 The amount on line 2 is $2,050. Irs tax forms 2010 This is the larger of: $1,000 plus the $1,050 of directly connected itemized deductions, or $2,000. Irs tax forms 2010 Line 3 Subtract line 2 from line 1 and enter the result on this line. Irs tax forms 2010 If zero or less, do not complete the rest of the form. Irs tax forms 2010 However, you must still attach Form 8615 to the child's tax return. Irs tax forms 2010 Figure the tax on the child's taxable income in the normal manner. Irs tax forms 2010 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. Irs tax forms 2010 Child files Form 2555 or 2555-EZ. Irs tax forms 2010   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. Irs tax forms 2010 Enter the amount from line 3 of the Foreign Earned Income Tax Worksheet as the child's taxable income on Form 8615, line 4. Irs tax forms 2010 Line 5 (Net Unearned Income) A child's net unearned income cannot be more than his or her taxable income. Irs tax forms 2010 Enter on Form 8615, line 5, the smaller of line 3 or line 4. Irs tax forms 2010 This is the child's net unearned income. Irs tax forms 2010 If zero or less, do not complete the rest of the form. Irs tax forms 2010 However, you must still attach Form 8615 to the child's tax return. Irs tax forms 2010 Figure the tax on the child's taxable income in the normal manner. Irs tax forms 2010 Step 2. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 For example, do not refigure the medical expense deduction. Irs tax forms 2010 Figure the tentative tax on Form 8615, lines 6 through 13. Irs tax forms 2010 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. Irs tax forms 2010 If the parent's taxable income is zero or less, enter zero on line 6. Irs tax forms 2010 Parent files Form 2555 or 2555-EZ. Irs tax forms 2010   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. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 Do not include the amount from line 5 of the Form 8615 being completed. Irs tax forms 2010 (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. Irs tax forms 2010 ) Example. Irs tax forms 2010 Paul and Jane Persimmon have three children, Sharon, Jerry, and Mike, who must attach Form 8615 to their tax returns. Irs tax forms 2010 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. Irs tax forms 2010 Line 7 of Jerry's Form 8615 will show $1,800 ($800 + $1,000). Irs tax forms 2010 Line 7 of Mike's Form 8615 will show $1,400 ($800 + $600). Irs tax forms 2010 Other children's information not available. Irs tax forms 2010   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. Irs tax forms 2010 Estimates and extensions are discussed earlier under Providing Parental Information (Form 8615, Lines A–C) . Irs tax forms 2010 Line 8 (Parent's Taxable Income Plus Children's Net Unearned Income) Enter on this line the total of lines 5, 6, and 7. Irs tax forms 2010 You must determine the amount of net capital gain and qualified dividends included on this line before completing Form 8615, line 9. Irs tax forms 2010 Net capital gain. Irs tax forms 2010   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. Irs tax forms 2010 If Schedule D is not required, it is the amount on Form 1040, line 13; Form 1040A, line 10; or Form 1040NR, line 14. Irs tax forms 2010 Qualified dividends. Irs tax forms 2010   Qualified dividends are those dividends reported on line 9b of Form 1040 or Form 1040A, or line 10b of Form 1040NR. Irs tax forms 2010 Net capital gain and qualified dividends on line 8. Irs tax forms 2010   If neither the child, nor the parent, nor any other child has net capital gain, the net capital gain on line 8 is zero. Irs tax forms 2010   If neither the child, nor the parent, nor any other child has qualified dividends, the amount of qualified dividends on line 8 is zero. Irs tax forms 2010   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. Irs tax forms 2010   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. Irs tax forms 2010   Use the instructions for Form 8615, line 8, including the appropriate Line 5 Worksheet, to find these amounts. Irs tax forms 2010 See the instructions for Form 8615 for more details. Irs tax forms 2010 Note. Irs tax forms 2010 The amount of any net capital gain or qualified dividends is not separately reported on line 8. Irs tax forms 2010 It is  needed, however, when figuring the tax on line 9. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 If line 8 includes any net capital gain or qualified dividends, use the Qualified Dividends and Capital Gain Tax Worksheet to figure this tax. Irs tax forms 2010 For details, see the instructions for Form 8615, line 9. Irs tax forms 2010 However, if the child, parent, or any other child has 28% rate gain or unrecaptured section 1250 gain, use the Schedule D Tax Worksheet. Irs tax forms 2010 But if Schedule J is used to figure the tax on the parent's return, use it to figure this tax. Irs tax forms 2010 Child files Form 2555 or 2555-EZ. Irs tax forms 2010   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. Irs tax forms 2010 Using the Schedule D Tax Worksheet for line 9 tax. Irs tax forms 2010    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. Irs tax forms 2010 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. Irs tax forms 2010 Then figure the line 9 tax using another Schedule D Tax Worksheet. Irs tax forms 2010 (Do not attach this Schedule D Tax Worksheet to the child's return. Irs tax forms 2010 )   Complete this Schedule D Tax Worksheet as follows. Irs tax forms 2010 On line 1, enter the amount from Form 8615, line 8. Irs tax forms 2010 On line 2, enter the qualified dividends included on Form 8615, line 8. Irs tax forms 2010 (See the earlier discussion for line 8. Irs tax forms 2010 ) 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. Irs tax forms 2010 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. Irs tax forms 2010 If applicable, include instead the smaller amount entered on the dotted line next to line 4e. Irs tax forms 2010 On lines 5 and 6, follow the worksheet instructions. Irs tax forms 2010 On line 7, enter the net capital gain included on Form 8615, line 8. Irs tax forms 2010 (See the earlier discussion for line 8. Irs tax forms 2010 ) On lines 8 through 10, follow the worksheet instructions. Irs tax forms 2010 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). Irs tax forms 2010 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. Irs tax forms 2010 Figure these amounts as explained later under Figuring unrecaptured section 1250 gain (line 11) and Figuring 28% rate gain (line 11). Irs tax forms 2010 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. Irs tax forms 2010 Otherwise, skip steps 10, 11, and 12 below, and go to step 13. Irs tax forms 2010 Determine whether there is a line 8 capital gain excess as follows. Irs tax forms 2010 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. Irs tax forms 2010 (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. Irs tax forms 2010 ) Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. Irs tax forms 2010 Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. Irs tax forms 2010 If the result is more than zero, that amount is the line 8 capital gain excess. Irs tax forms 2010 If the result is zero or less, there is no line 8 capital gain excess. Irs tax forms 2010 If there is no line 8 capital gain excess, skip step 12 below and go to step 13. Irs tax forms 2010 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. Irs tax forms 2010 (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet. Irs tax forms 2010 ) Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 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. Irs tax forms 2010 Complete lines 12 through 45 following the worksheet instructions. Irs tax forms 2010 Use the parent's filing status to complete lines 15, 42, and 44. Irs tax forms 2010 Enter the amount from line 45 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line