Reference no: EM132008184

FORM 8615 - TAX FOR CERTAIN CHILDREN WHO HAVE UNEARNED INCOME

Judy L. Small is 16 years old, and she can be claimed as a dependent on her parents' tax return. During 2013, Judy earned $6,500 from her part-time job at The Burger Joint, and interest income of $5,200 from her savings account at The American Bank. Judy had $500 in federal taxes and $175 in Illinois taxes withheld from her W-2 earnings. Because Judy is under the age of 18 and has investment income over $2,000, she computes her tax on Form 8615. Since Judy does not have enough deductions to itemize, she may use Form 1040A.

Judy's parents, Fred J. and Ann Small, file a joint return for 2013. They have one other six year-old child, James F. Small, who has no income. The Smalls' taxable income for 2013 is $56,000, and their tax as reported on Line 44 of their Form 1040 is $7,511. None of this tax is calculated using Form 8814 or Form 4972. Judy's parents also did not use the Qualified Dividends and Capital Gain Tax Worksheet, Schedule D Tax Worksheet, or Schedule J to compute their tax liability.

Judy and her parents reside at 46 Main Street, Glen Ellyn, Illinois 60137. Judy's social security number is 401-89-0034, and her father's social security number is 564-73-9689.