Page 18

Child files Form 2555. If line 8 includes any net capital gain or qualified dividends and the child, or any other child filing Form 8615, also files Form 2555, see Using the Schedule D Tax Worksheet for line 9 tax next to figure the line 9 tax. Using the Schedule D Tax Worksheet for line 9 tax. Use the Schedule D Tax Worksheet (in the Schedule D in- structions) to figure the tax on line 9, if the child, the pa- rent, or any other child has unrecaptured section 1250 gain or 28% rate gain. If you must use the Schedule D Tax Worksheet, first complete any Schedule D and any actual Schedule D Tax Worksheet required for the child, the pa- rent, or any other child. Then, figure the line 9 tax using another Schedule D Tax Worksheet. (Don’t attach this Schedule D Tax Worksheet to the child’s return.) Complete this Schedule D Tax Worksheet as follows. 1. On line 1, enter the amount from Form 8615, line 8. 2. On line 2, enter the qualified dividends included on Form 8615, line 8. (See the earlier discussion for Form 8615, line 8.) 3. On line 3, enter the total of the amounts, if any, on line 4g of all Forms 4952 filed by the child, the parent, or any other child. 4. On line 4, enter the total of the amounts, if any, on line 4e of all Forms 4952 filed by the child, the parent, or any other child. If applicable, include instead the smaller amount entered on the dotted line next to line 4e. 5. On lines 5 and 6, follow the worksheet instructions. 6. On line 7, enter the net capital gain included on Form 8615, line 8. (See the earlier discussion for line 8.) 7. On lines 8 through 10, follow the worksheet instruc- tions. 8. On line 11, enter zero if neither the child, nor the pa- rent, nor any other child has unrecaptured section 1250 gain (Schedule D, line 19) or 28% rate gain (Schedule D, line 18). Otherwise, enter the amount of unrecaptured section 1250 gain and 28% rate gain in- cluded in the net capital gain on Form 8615, line 8. Figure these amounts as explained later under Figur- ing unrecaptured section 1250 gain (line 11) and Fig- uring 28% rate gain (line 11). 9. If the Foreign Earned Income Tax Worksheet was used to figure the parent's tax or the tax of any child, go to step 10 below. Otherwise, skip steps 10, 11, and 12 below, and go to step 13. 10. Determine whether there is a line 8 capital gain ex- cess as follows. a. Add the amounts on line 2c of all Foreign Earned Income Tax Worksheets completed by the parent or any child for whom Form 8615 is filed. (But, for each child, don’t add more than the excess, if any, of the amount on line 5 of the child's Form 8615 over the child’s taxable income on Form 1040 or 1040-NR, line 15.) b. Subtract (a) from the amount on line 1 of this Schedule D Tax Worksheet. c. Subtract (b) from the amount on line 10 of this Schedule D Tax Worksheet. If the result is more than zero, that amount is the line 8 capital gain ex- cess. If the result is zero or less, there is no line 8 capital gain excess. 11. If there is no line 8 capital gain excess, skip step 12 below and go to step 13. 12. If there is a line 8 capital gain excess, complete a sec- ond Schedule D Tax Worksheet as instructed above and in step 13 but in its entirety and with the following additional modifications. (These modifications are to be made only for purposes of filling out this additional Schedule D Tax Worksheet.) a. Reduce the amount you would otherwise enter on line 9 (but not below zero) by the line 8 capital gain excess. b. Reduce the amount you would otherwise enter on line 6 (but not below zero) by any of the line 8 cap- ital gain excess not used in (a) above. c. If the child, the parent, or any other child has 28% rate gain, reduce the amount you would otherwise enter on line 8 of Worksheet 1 for Line 11 of the Schedule D Tax Worksheet—28% Rate Gain (Line 9 Tax), shown later, (but not below zero) by the line 8 capital gain excess, and refigure the amount on line 11 of this Schedule D Tax Work- sheet. d. If the child, the parent, or any other child has un- recaptured section 1250 gain, reduce the amount you would otherwise enter on line 8 of Worksheet 2 for Line 11 of the Schedule D Tax Work- sheet—Unrecaptured Section 1250 Gain (Line 9 Tax) (but not below zero) by the line 8 capital gain excess not used in step 12c above, and refigure the amount on line 11 of this Schedule D Tax Worksheet. 13. Complete lines 12 through 47 following the worksheet instructions. On line 35, enter the smaller of (a) line 9 of this worksheet; or (b) the total of the amounts, if any, on line 19 of all Schedules D (Form 1040) filed by the child, the parent, or any other child. Use the parent's filing status to complete lines 15, 44, and 46. Enter the amount from line 47 of this Schedule D Tax Worksheet on Form 8615, line 9, and check the box on that line. Don’t attach this worksheet to the child’s return. Figuring 28% rate gain (line 11). If the child, the pa- rent, or any other child has 28% rate gain, figure the amount of 28% rate gain included in the net capital gain on Form 8615, line 8, using the following worksheet. Page 18 Publication 929 (2021)