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Chapter 4 – Taxes and Credits


Page 2: Form 1040, line 44(cont.) to line 46

Do you want the IRS to figure the tax on your taxable income for you? If you do, see chapter 30 of Publication 17, Your Federal Income Tax (for Individuals) for details, including who is eligible and what to do. If you have paid too much, the IRS will send you a refund. If you did not pay enough, the IRS will send you a bill.

If you want to figure your tax on your own, use one of the following methods to figure your tax:

Tax Table or Tax Computation Worksheet: If your taxable income is less than $100,000, you must use the Tax Table to figure your tax. Be sure you use the correct column. If your taxable income is $100,000 or more, use the Tax Computation Worksheet.

However, you do not use the Tax Computation Worksheet and one of the following must be used based on your tax situation:

Form 8615,  Tax for Certain Children Who Have Unearned Income: Form 8615 generally must be used to figure the tax for any child who had more than $2,100 of unearned income, such as taxable interest, ordinary dividends, or capital gains (including capital gain distributions), and who either:

But if the child files a joint return for 2016 or if neither of his or her parents was alive at the end of 2016, do not use Form 8615 to calculate the child's tax. A child born on:

Schedule D Tax Worksheet:   If you have to file Schedule D, Capital Gains and Losses, and line 18 or 19 of Schedule D is more than zero, use the Schedule D Tax Worksheet in the Instructions for Schedule D to calculate the amount to enter on Form 1040, line 44. But if you are filing Form 2555, Foreign Earned Income, or 2555-EZ, Foreign Earned Income Exclusion, you must use the Foreign Earned Income Tax Worksheet instead.

Qualified Dividends and Capital Gain Tax Worksheet:  Use the Qualified Dividends and Capital Gain Tax Worksheet, later, to figure your tax if you do not have to use the Schedule D Tax Worksheet and if any of the following applies.

But if you are filing Form 2555 or 2555-EZ, you must use the Foreign Earned Income Tax Worksheet instead.

Schedule J:  If you had income from farming or fishing (including certain amounts received in connection with the Exxon Valdez litigation), your tax may be less if you choose to figure it using income averaging on Schedule J, Income Averaging for Farmers and Fishermen.

Foreign Earned Income Tax Worksheet:  If you claimed the foreign earned income exclusion, housing exclusion, or housing deduction on Form 2555 or 2555-EZ, you must figure your tax using the Foreign Earned Income Tax Worksheet.

Line 45 – Alternative Minimum Tax: Use Form 6251, Alternative Minimum Tax – Individuals, to figure the amount, if any, of your alternative minimum tax (AMT). Also see the Instructions for Form 6251 to see if you must file the form.

Line 46 - Excess Advance Premium Tax Credit Repayment: The premium tax credit helps pay premiums for health insurance purchased from the Health Insurance Marketplace. If advance payments of this credit were made for coverage for you, your spouse, or your dependent, complete Form 8962, Premium Tax Credit. If the advance payments were more than the premium tax credit you can claim, enter the amount, if any, from Form 8962, line 29.

For more information about advanced premium tax credit payments and the repayment of excess advanced payments , see the Advanced Premium Tax Credit page.