What is the main purpose of Form 8615?

Form 8615 is specifically designed to calculate tax for certain children who have investment income that exceeds a certain threshold. This form is primarily used to ensure that the investment income of children—typically those under the age of 19 (or under age 24 if a full-time student)—is taxed at the parent's tax rate rather than the child's potentially lower tax rate.

This method aims to prevent parents from transferring assets to their children to take advantage of lower tax brackets, which could lead to significant revenue losses for the government. When a child has unearned income, such as interest, dividends, or capital gains, and it exceeds the defined limit, parents need to file Form 8615 to correctly assess the tax owed on that income.

The other choices listed focus on different scenarios, such as reporting income for nonresident aliens, claiming exemptions, or determining head of household status, none of which pertain to the unique purpose of Form 8615 regarding the taxation of children's investment income.