- 1 -
|
Clear Form
INSTRUCTIONS STATE OF HAWAII—DEPARTMENT OF TAXATION
FORM N-615
(REV. 2009) INSTRUCTIONS FOR FORM N-615
COMPUTATION OF TAX FOR CHILDREN UNDER AGE 14 WHO
HAVE INVESTMENT INCOME OF MORE THAN $1,000
General Instructions Line-by-Line Instructions performed. Generally, earned income is the total
of the amounts reported as wages, salaries, tips,
Note: The federal provisions in the: (1) Tax We have provided specific instructions for most etc., business income (loss), and farm income
Increase Prevention and Reconciliation Act of the lines on the form. Those lines that do not (loss) on federal Form 1040 or Form N-15, lines
of 2005, and (2) Small Business and Work appear in these instructions are self-explanatory. 7 and 12.
Opportunity Tax Act of 2007 relating to minor
Lines A and B. –– If the child’s parents were Line 2. –– If the child itemized deductions on
children whose unearned income is taxed as if married to each other and filed a joint return, Form N-11 or Form N-15, enter on line 2 the
parent’s income has not been adopted for Hawaii
enter the name and social security number of the
income tax purposes at the present time. greater of:
parent who is listed first on the joint return. For
Purpose of Form. –– For children under age 14, example, if the father’s name is listed first on the •$500 plus the portion of the amount on Form
investment income (such as taxable interest and return and his social security number is entered N-11, line 22; or Form N-15, line 39, that is
dividends) over $1,000 is taxed at the parent’s in the block labeled “Your social security number,” directly connected with the production of the
investment income on Form N-615, line 1; OR
rate if the parent’s rate is higher than the child’s enter his name on line A and his social security
rate. number on line B. If a parent is an alien and •$1,000
was issued an individual taxpayer identification
Do not use this form if the child’s investment Line 6. — Enter the taxable income shown on
number (ITIN) by the IRS, enter the ITIN. If the
income is $1,000 or less. Instead, figure the tax individual has applied for an ITIN but the IRS has the tax return of the parent identified on line A of
in the normal manner on the child’s income tax Form N-615. If the parent’s taxable income is less
not yet issued the ITIN, write “Applied For”.
return. For example, if the child had $900 of than zero, enter zero on line 6. If the parent filed
taxable interest income and $200 of wages, Form If the parents were married but filed separate a joint return, enter the taxable income shown on
N-615 is not required to be completed and the returns, enter the name and social security the return even if the parent’s spouse is not the
child’s tax should be figured using the Tax Table. number of the parent who had the higher taxable child’s parent.
income. If you do not know which parent has the
If the child’s investment income is more than Line 7. — If the individual identified as the parent
higher taxable income, see federal Publication
$1,000, use this form to see if any of the child’s 929. on this Form N-615 is also identified as the parent
investment income is taxed at the parent’s rate on any other Form N-615, add the amounts, if
and, if so, to figure the child’s tax. For example, If the parents were unmarried, treated as any, from line 5 on each of the other Forms N-615
if the child had $1,100 of taxable interest income unmarried for State income tax purposes, and enter the total on line 7.
and $200 from wages, complete Form N-615 and or separated either by a divorce or separate
attach it to the child’s Form N-11 or Form N-15. maintenance decree, enter the name and social Line 9. — Figure the tax on the amount on line 8
security number of the parent who had custody using the Tax Table, Tax Rate Schedules, Capital
How To Obtain Tax Forms and Publications. Gains Tax Worksheet in the Instructions for Form
of the child for most of the year (the custodial
–– To request tax forms and publications by mail, parent). N-11 or Form N-15, or Form N-168, whichever
you may call 808-587-4242 or toll-free at 1-800- applies. If any net capital gain is included on line
222-3229. Exception: If the custodial parent remarried and 8, the tax on the amount on line 8 may be less
filed a joint return with his or her new spouse,
Tax forms are also available on the Internet. if the Capital Gains Tax Worksheet can be used
enter the name and social security number of
The Department of Taxation’s site on the Internet to figure the tax. (See federal Publication 929
is: www.hawaii.gov/tax the individual who is listed first on the joint return for information on how to figure the net capital
even if that individual is not the child’s parent. If gain included on line 8.) The Capital Gains Tax
Investment Income. –– As used on this form, the custodial parent and his or her new spouse Worksheet should be used to figure the tax if:
“investment income” includes all taxable income filed separate returns, enter the name and social
other than earned income as defined below. It security number of the person with the higher the parent’s the amount on
includes income such as taxable interest, ordinary taxable income, even if that person is not the filing status AND Form N-615,
is line 8, is over
dividends, capital gains (including capital gain child’s parent.
distributions), rents, royalties, etc. It also includes
annuity income and income (other than earned Note: If the parents were unmarried but lived • Single $ 24,000
together during the year with the child, enter the
income) received as the beneficiary of a trust. • Married filing joint return
name and social security number of the parent
Who Must File. –– Generally, Form N-615 must who had the higher taxable income. or Qualifying widow(er)
be filed for any child who was under age 14 with dependent child $ 48,000
Line D. –– If the parent’s filing status is married
on January 1, 2010, had more than $1,000 of filing separately and the parent claimed an • Married filing separate
investment income, and is required to file a tax
exemption for his or her spouse, write “Spouse”
return. If neither parent was alive on December return $ 24,000
31, 2009, do not use Form N-615. Instead, figure in the space to the left of the box on line D.
the child’s tax based on his or her own rate. Line 1. –– If the child had no earned income • Head of household $ 36,000
Note: The parent may be able to elect to report (defined below), enter the child’s adjusted gross
income (from Form N-11, line 20 or Form N-15, If the Capital Gains Tax Worksheet is used to
the child’s interest, ordinary dividends, and figure the tax:
line 36, Column B).
capital gain distributions on the parent’s return.
If the parent makes this election, the child will If the child had earned income, use the 1. Enter on line 1 of the worksheet, the
not have to file a return or Form N-615. For more Worksheet on page 2 to figure the amount to amount from Form N-615, line 8;
information, see Instructions for Form N-11 or enter on line 1. However, if the child had a net 2. Enter on line 8 of the worksheet, the net
Form N-15 or get Form N-814, Parent’s Election loss from self-employment or claims a net capital gain included on Form N-615, line
To Report Child’s Interest and Dividends. operating loss deduction, use the worksheet in 8;
federal Publication 929 instead of the one on 3. Complete the worksheet; and
Additional Information. –– For more information
page 2 to figure the amount to enter on Form 4. Enter on Form N-615, line 9, the amount
about the tax on investment income of children, N-615, line 1. from line 19 of the worksheet, and
get federal Publication 929, Tax Rules for Children
and Dependents. Earned Income includes wages, tips, and check the box for “Capital Gains Tax
other payments received for personal services Worksheet”.
|