U.S. · Form 8615 line 5
Form 8615 line 5 net unearned income.
The amount of a child’s income that gets taxed at the parent’s rate.
Form 8615 line 5 is “Enter the smaller of line 3 or line 4.” Line 3 is the child’s unearned income (line 1) minus $2,700 (line 2) for a child who did not itemize, and line 4 is the child’s taxable income. If line 5 is zero, stop; you still attach Form 8615 to the child’s return and figure the tax the normal way.
Run lines 1 to 5
Result
Reference table
| Line | What it holds |
|---|---|
| Line 1 | The child’s unearned income. |
| Line 2 | $2,700 if the child did not itemize; otherwise the larger of $1,350 plus directly connected itemized deductions, or $2,700. |
| Line 3 | Line 1 minus line 2. Zero or less means stop. |
| Line 4 | The child’s taxable income from Form 1040 or 1040-NR, line 15. |
| Line 5 | The smaller of line 3 or line 4. Zero means stop. |
What kiddie tax does
For children under age 18 and certain older children described in the instructions, unearned income over $2,700 is taxed at the parent’s rate if the parent’s rate is higher than the child’s. If the child’s unearned income is more than $2,700, Form 8615 is used to figure the child’s tax. Line 5 is the figure the rest of the form carries forward as the part taxed at the parent’s rate.
Why the smaller of line 3 or line 4
The instructions say a child’s net unearned income can’t be more than their taxable income. Line 3 is unearned income above the $2,700 threshold; line 4 is what is actually left after the child’s deductions. Whichever is smaller is line 5.
Line 2 when the child itemizes
A child who itemizes enters the larger of $1,350 plus the part of Schedule A line 17 directly connected with producing the unearned income, or $2,700. Directly connected expenses are those to produce or collect taxable income or to manage, conserve or maintain property held for producing income, such as custodian fees and certain investment counsel fees. Miscellaneous itemized deductions are suspended for 2018 through 2025 (the instructions note this suspension was permanently extended).
Worked example
A child has $8,000 of unearned income and does not itemize, so line 2 is $2,700 and line 3 is $5,300. If the child’s taxable income on line 4 is $4,500, line 5 is the smaller figure, $4,500. Had line 4 been $6,000, line 5 would be $5,300. Had line 1 been $2,500, line 3 would be negative and you would stop. All figures are illustrative.
Limits of this page
This covers lines 1 to 5 only. Who must file, which parent’s return to use and the tax computations on later lines are covered in the instructions. For a child who files Form 2555, line 4 uses a different figure described there.
Sources
- Instructions for Form 8615 (2025): Line-by-line instructions, worksheets and limits. Read November 2, 2026.
- Form 8615 (2025): The form itself, for exact line wording. Read November 2, 2026.
These are the tax year 2025 edition instructions and forms (published for returns filed in 2026). The IRS revises them each year, so thresholds, line numbers and limits can change; check the current edition before relying on a figure.
Frequently asked questions
What is line 5 on Form 8615?
The smaller of line 3 (unearned income minus the line 2 amount) or line 4 (the child’s taxable income).
What is line 2 on Form 8615?
$2,700 if the child did not itemize. If the child itemized, the larger of $1,350 plus directly connected itemized deductions, or $2,700.
What if line 3 or line 5 is zero?
Stop and do not complete the rest of the form, but still attach Form 8615 to the child’s return and figure the tax in the normal manner.
Where does line 4 come from?
The child’s taxable income from Form 1040 or 1040-NR, line 15. A child who files Form 2555 uses line 3 of the Foreign Earned Income Tax Worksheet instead.
Which tax year is this?
The 2025 edition of Form 8615 and its instructions.
Not tax or legal advice
This page summarizes IRS instructions and is not tax, legal or financial advice. A CPA, enrolled agent or the IRS can confirm what applies to your situation. Everything runs in your browser; nothing you enter is sent anywhere.