Illustrated Part I of Form 8615

Summary: This is an example of the worksheet and portion of Form 8615 (2009) with items included as described next.

Carla's total income on Form 1040A, line 15, is $5,000. This total includes wages (earned income) of $600 reported on line 7. She has no itemized deductions. Carla's taxable income on Form 1040A, line 27, is 4,050. Because Carla has earned income, the worksheet in the instructions is used to figure the amount to enter on line 1 of Form 8615.

Carla's filled-in worksheet and Part I of Form 8615, with lines 1 through 5 filled in, are shown here.

Carla's total income of $5,000 (on line 15 of her Form 1040A) is entered on line 1 of the worksheet. Her earned income of $600 (her wages on line 7 of her Form 1040A) is entered on line 2 of the worksheet. Line 3 is the result of subtracting $600 from $5,000.

The amount from line 3 of the worksheet is entered on line 1 of Form 8615. Carla did not itemize deductions, so $1,900 is entered on line 2. Line 3 of Form 8615 is the result of subtracting $1,900 from $4,400. Carla's taxable income of $4,050 (on line 27 of her Form 1040A) is entered on line 4 of Form 8615. The smaller of $2,500 or $4,050 is entered on line 5. This is her net investment income.