Instructions for Form 8615 - Tax for Certain Children Who Have Unearned Income 2020

Sep 19, 2026

2020 Instructions for Form 8615 explain when a child must file and how unearned income is taxed. For qualifying children under age 18 (and certain older full-time students), unearned income over $2,200 is generally taxed at the parent’s rate when higher than the child’s. The guidance defines unearned income broadly, details eligibility conditions, addresses January 1 birthday exceptions, and explains an election allowing retroactive use of the parent’s individual tax rate for 2018–2019. It also notes how to handle incomplete information and references related publications and forms.

LanguageEnglish

CategoryForms

FormatPDF

Pages6

Reading Time2 min

AccessFree to download

Future Developments

What’s New

Reminder

General Instructions

Purpose of Form

Unearned Income

Who Must File

Support

Certain January 1 birthdays

Parent’s Election

Additional Information

Incomplete Information for Filing

2020 Instructions for Form 8615 Tax for Certain Children Who Have Unearned Income Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless otherwise noted. Future Developments For the latest information about developments related to Form 8615 and its instructions, such as legislation enacted after they were published, [go to](go to IRS.gov/Form8615)[ ](go to IRS.gov/Form8615)[IRS.gov/Form8615](go to IRS.gov/Form8615) . What’s New Change in tax rates. Recent legislation modified the tax rates and brackets used to figure the tax on 2020 unearned income for certain children. For tax year 2020, dependent children with unearned income above a certain amount are taxed at the parents' individual tax rate. Taxpayers may also elect to retroactively use the tax rates based on the parents’ individual tax rate for dependent children with unearned income in tax years 2018 and 2019. Reminder Election to modify the tax on your unearned income. Recent legislation allows for taxpayers to elect to modify their tax on dependent children with unearned income for tax years 2018 and 2019. The election allows taxpayers to recalculate the tax on dependent children with unearned income for these years to be based on the parent’s individual tax rate instead of the previous tax rates (condensed trust and estates tax rates) . For tax years 2018 and 2019, if you choose to modify the tax on your unearned income using the tentative tax based on the tax rate of your parent, you will need to use the 2018 or 2019 Instructions for Form 8615 and file an amended return, [Form 1040-X. See](Form 1040-X. See IRS.gov/)[ ](Form 1040-X. See IRS.gov/)[IRS.gov/](Form 1040-X. See IRS.gov/)[ ](Form 1040-X. See IRS.gov/)[Form1040X](Form1040X for more information about amending a tax return. If you)[ for more information about amending a tax return. If you](Form1040X for more information about amending a tax return. If you)[ ](Form1040X for more information about amending a tax return. If you)make this election, include a statement or an attachment with your amended return specifying “election to modify tax on unearned income.” General Instructions Purpose of Form For children under age 18 and certain older children described below in Who Must File, unearned income over $2,200 is taxed atthe parent's rate if the parent's rate is higher than the child's. If the child's unearned income is more than $2,200, use Form 8615 to figure the child's tax. Unearned Income For Form 8615,“unearned income” includes all taxable income other than earned income. Unearned income includes taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, etc. It also includes taxable social security benefits, pension and annuity income, taxable scholarship and fellowship grants not reported on Form W-2, unemployment compensation, alimony, and income (other than earned income) received as the beneficiary of a trust. Who Must File Form 8615 must be filed for any child who meets all of the following conditions. 1. The child had more than $2,200 of unearned income. 2. The child is required to file a tax return. 3. The child either: a. Was under age 18 at the end of 2020, b. Was age 18 at the end of 2020 and didn’t have earned income that was more than half of the child's support, or c. Was a full-time student at least age 19 and under age 24 atthe end of 2020 and didn’t have earned income that was more than half of the child's support. (Earned income is defined later. Support is defined below.) 4. At least one of the child's parents was alive at the end of 2020. 5. The child doesn’t file a joint return for 2020. For these rules, the term “child” includes a legally adopted child and a stepchild. These rules apply whether or not the child is a dependent. These rules don’t apply if neither of the child’s parents were living at the end of the year.

FAQs

When must Form 8615 be filed for a child’s unearned income for 2020?

Form 8615 must be filed when the child has more than $2,200 of unearned income, is required to file a return, meets the age/student criteria for 2020, has at least one parent alive at the end of 2020, and does not file a joint return for 2020.

What counts as unearned income under Form 8615?

Unearned income includes taxable income other than earned income, such as taxable interest, ordinary dividends, capital gains (including capital gain distributions), rents, royalties, taxable social security benefits, pension and annuity income, certain taxable scholarships, unemployment compensation, alimony, and trust beneficiary income other than earned income.

How does the election to modify tax on unearned income work for 2018 and 2019?

Recent legislation allows taxpayers to elect to recalculate tax for dependent children with unearned income in 2018 and 2019 using the parent’s individual tax rate instead of earlier tax rates. If making the election, an amended return and a statement or attachment specifying the election are required.

Sep 19, 2026

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