If a child has investment income or other unearned income, they may need to file Form 8615, Tax for Certain Children Who Have Unearned Income. This form is used to calculate the "kiddie tax," which can apply part of the parent's tax rate to a child's unearned income.
Form 8615 is attached to the child's federal tax return (Form 1040 or Form 1040-NR), and any tax calculated on the form is paid by the child, not the parent.
Important Program Alert
Our software does not automatically create Form 8615.
Instead, the program may display a warning message if the information entered suggests that Form 8615 could be required.
The warning is designed to let you know that:
- Your return may require Form 8615.
- You should review the Form 8615 filing requirements.
- You may need to complete the form manually.
Ultimately, it's your responsibility to determine whether Form 8615 applies and to complete it when required.
Who Must File Form 8615 for Tax Year 2026?
A child must file Form 8615 if all of the following conditions apply:
Unearned income is more than $2,700
For tax year 2026, Form 8615 generally applies only when the child's unearned income exceeds $2,700.
Unearned income commonly includes:
- Taxable interest
- Ordinary dividends
- Qualified dividends
- Capital gains
- Capital gain distributions
- Rents and royalties
- Trust or estate income
- Pension and annuity income
- Certain taxable scholarships not reported as wages
- Taxable Social Security benefits
- Unemployment compensation
Important:
- Exactly $2,700 of unearned income does not meet this test.
- $2,701 or more meets this test.
The child is required to file a federal tax return
Form 8615 only applies if the child is otherwise required to file a federal income tax return for the year.
The child meets the age and support test
At the end of 2026, the child must meet one of these conditions:
- Be under age 18, or
- Be age 18 and not have earned income that provided more than half of their own support, or
- Be a full-time student age 19 through 23 who did not provide more than half of their own support through earned income.
These rules may apply whether or not someone claims the child as a dependent. What matters is who provided the child's support, not who claimed the dependency exemption.
At least one parent was alive at year-end
At least one of the child's parents must have been living at the end of 2026. If neither parent was alive at year-end, Form 8615 does not apply.
The child does not file a joint return
Children who file a joint return with a spouse are not subject to these Form 8615 rules.
Where to Enter Form 8615 in the Program
Navigate to:
Federal > Other Taxes > Form 8615 - Tax for Certain Children Who Have Unearned Income
If Form 8615 applies, complete the entry screens in this section.
"Do Calculation Based on Parent's Tax Rate" Checkbox
When you select this option, you are telling the program that the IRS kiddie tax rules apply and that part of the child's unearned income must be taxed using the parent's tax rate.
Checking this box activates the remaining Form 8615 entry fields.
Parent Information Section
You'll be asked to enter information about the parent whose tax rate will be used, including:
- Parent's name
- Parent's Social Security number
- Parent's filing status
This information allows the program to determine which tax rates apply when calculating the kiddie tax.
Why Parent Income Information Is Required
You may also be asked to provide items from the parent's return, such as:
- Taxable income
- Qualified dividends
- Capital gains
- Special-rate capital gain information
The IRS requires part of the child's unearned income to be taxed as though it were added to the parent's income. However, this calculation does not change the parent's tax return and does not create additional tax on the parent's return.
Other Children Information
This section is generally needed only when the same parent has more than one child subject to Form 8615.
You may be asked to enter information from another child's Form 8615, including:
- Amounts from line 5
- Qualified dividends
- Capital gains and capital gain distributions
The IRS requires the parent's tax rate calculation to be coordinated among all children subject to kiddie tax rules so the tax is calculated correctly for each child.
If this is the only child subject to Form 8615, these amounts are usually entered as zero.
Common Questions
Why did I receive a warning if no Form 8615 was created?
The warning simply means your return may meet the IRS filing requirements for Form 8615. The program does not automatically create the form. You must review the requirements and complete the Form 8615 section when it applies.
Does Form 8615 increase my parent's tax?
No. The additional tax is calculated and paid on the child's tax return. The parent's return does not change.
Why do I need my parent's information?
The IRS requires the parent's tax rate to calculate the kiddie tax. The information is used only to determine the correct tax on the child's unearned income.
Key Takeaway
A child will generally need Form 8615 for tax year 2026 when:
- They have more than $2,700 of unearned income,
- They are required to file a tax return,
- They meet the IRS age and support rules,
- At least one parent was alive at year-end, and
- They do not file a joint return.
If these conditions are met, Form 8615 must be completed and attached to the child's tax return, even though the program may only display a warning and not automatically generate the form.
For additional details, see the IRS Instructions for Form 8615.