newbie003 wrote: ↑Tue Mar 13, 2018 1:01 pm
Hi Kevin. Thanks so much for the detailed and helpful explanation! If I read it all correctly, it seems very simple; the figure that HR Block is referring to, where they want "line 1a of parent's 8615 worksheet", is simply line 43 of my 1040 (my taxable income). Is this correct?
On the HRB form 8615, I just see line 6 as requesting this directly, not referencing the 8615 worksheet, but yes, parent's taxable income goes on line 6 of child's Form 8615, and yes this is on Line 1a of the of the parent's 8615 worksheet. I was just looking at the forms, but in checking, I see that the interview requests it from line 1a of the parent's 8615 worksheet, but if you look at form 8615 itself, it says exactly what to enter.
That's actually what I had entered (my figure is somewhere between $75k and $100k), and that's when it told me that my son owed $12k in taxes... (I guess not realizing that I had already paid taxes...?). Any other thoughts as to what I might be doing wrong in this section?
Maybe you didn't finish form 8615? There are other numbers you need to enter that would come from the HRBlock 8615 worksheet if you had used it for your return. Here are mine:
Form 8615 line 6, parent's taxable income from 1040, line 43
Form 8615 line 9e, parent's net capital gain (Sched D line 15)
Form 8615 line 9f, parent's 28% gain (Sched D line 18); for me this is 0
Form 8615 line 9g, parent's unrecap sec 1250 gain (Sched D line 19); for you this may be 0, for me it was not
Form 8615 line 9h, parent's qualified dividends (1040 line 9b or Sched D tax worksheet line 2)
Form 8615 line 10, parent's tax (1040 line 44)
All the line 9 items are in the mini-worksheet for Form 8615 line 9.
Those are all the numbers that come from the 8615 worksheet. Now I'll look at daughter's form 8615.
Part I is all based on child's income, so HRBlock fills this in automatically based on entries elsewhere in child's return.
Part II
Line 6. You should have an entry on line 6, parent's taxable income, 1040 line 43.
Line 7. Relates 8615s for all other children, which I understand in your case should be 0.
Line 8. Sum of lines 5 (from Part I), 6 and 7.
Line 9. Fill out mini-worksheet for line 9 based on discussion above. Amount on line 9 is calculated based on line 8 and mini-worksheet entries for line 9.
Line 10. I got this from form 8615 worksheet, but you can get it directly from your 1040 line 44
Line 11. Subtract line 10 from line 9. This is the kiddie tax.
So if your line 11 is much larger than expected, it seems you must have not entered data in one of the previous lines, or entered it incorrectly.
Part III is Child's Tax calculations done by HRBlock software. For me lines 15 and 17, tax using child's filing status, are 0, so line 18 is equal to line 11, the kiddie tax.
If you are using download version of HRBlock, it's easy to look at the form directly and relate to notes above. If you are using online version with interview only, and can't easily open Form 8615 to view it directly, let me know if you still can't get it right based on above, and I'll relate the form numbers to the interview questions you may be having trouble with.
Kevin