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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.
Overview
The child's age (as of the end of the tax year) must meet one of the following requirements for Form 8615.
- Under the age of 18
- Age 18 and earned income was less than half of their support
- Between 18 and 24, full-time student, and earned income was than half of their support
To determine if you should file Form 8615 for children between ages 18 and 23, you must complete the Meets certain children age 18 through 23 conditions field in the 1040 screen, located in the General folder.
Note: The Filing Status Optimization utility will not split the data entered in the parent's 8615 screen. If it is more beneficial for your married clients to file separately, delete the 8615 screen data in the joint return and redefine the family unit in the appropriate separate return. If you enter data in the 8615 screen for both the parent's joint and separate returns, the children's Form 8615 will not calculate correctly.
Form 8615 - General and Parent Information
Use this section to enter general form and parental information needed to complete Form 8615. Enter the child's date of birth in the 1040 screen to determine if the child meets the age requirements for Form 8615.
Data in this non-enterable filed indicates that the data was transferred to this screen using the Family Transfer Utility.
Enter the parent's name and Social Security number (SSN), as outlined in the Form 8615 instructions. For example, if the child's parents were married to each other and filed a joint return, enter the name and SSN of the parent who is listed first on the joint return.
Use this field to make a positive or negative adjustment to earned income used to calculate Form 8615 line 1, Unearned income. Earned income for Form 8615 purposes is defined as wages, tips, and other payments received for personal services performed, and is generally the total of Form 1040 line 1 and Schedule 1, lines 12 and 18. Earned income also includes a reasonable allowance for personal services compensation when the child is involved in a trade or business in which both personal services and capital are material-producing factors. Line 1 calculates using the child investment income worksheets located in Form 8615 and Publication 929. The child investment income worksheets calculate line 1, unearned income by subtracting "earned income" from total income. See the Form 8615 instructions and IRS Publication 929, Tax Rules for Children and Dependents for more information.
Note: As defined in Publication 929, Tax Rules for Children and Dependents, unearned income includes taxable interest, dividends, capital gains (including capital gain distributions), and the taxable part of Social Security and unemployment compensation. Investment 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).
Mark the box to designate that unearned income is estimated. The word “Estimated” will print above line 1.
2018 UltraTax CS
