Page 40 - Individual Forms & Instructions Guide

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If you had a net qualified disaster loss reduced by the amount of any foreign rect column. If your taxable income is
and you elect to increase your standard tax credits claimed on Form 1118. See $100,000 or more, use the Tax Compu-
deduction by the amount of your net section 962 for details. Check box 3 and tation Worksheet right after the Tax Ta-
qualified disaster loss, use Schedule A enter the amount and “962” in the space ble.
to figure your standard deduction. Quali- next to that box. Attach a statement
However, don’t use the Tax Table or
fied disaster loss refers to losses arising showing how you figured the tax. Tax Computation Worksheet to figure
from certain disasters occurring in 2016 • Recapture of an education credit.
and subsequent years. See the Instruc- You may owe this tax if you claimed an your tax if any of the following applies.
tions for Form 4684 and Schedule A, education credit in an earlier year, and Form 8615. Form 8615 must generally
line 16, for more information. either tax-free educational assistance or be used to figure the tax on your un-
a refund of qualified expenses was re- earned income over $2,300 if you are
Line 13 ceived in 2022 for the student. See Form under age 18, and in certain situations if
8863 for more details. Check box 3 and you are older.
Qualified Business Income enter the amount and “ECR” in the You must file Form 8615 if you meet
Deduction (Section 199A space next to that box. all of the following conditions.
• Any tax from Form 8621, line 16e,
Deduction) relating to a section 1291 fund. Check 1. You had more than $2,300 of un-
To figure your Qualified Business In- box 3 and enter the amount of the tax earned income (such as taxable interest,
ordinary dividends, or capital gains (in-
come Deduction, use Form 8995 or and “1291TAX” in the space next to that cluding capital gain distributions)).
Form 8995-A as applicable. box.
• Tax from Form 8978, line 14 (re- 2. You are required to file a tax re-
Use Form 8995 if: lating to partner's audit liability under turn.
• You have qualified business in- section 6226). Check box 3 and enter the 3. You were either:
come, qualified REIT dividends, or amount of the liability and “Form 8978”
qualified PTP income (loss); in the space next to that box. If the a. Under age 18 at the end of 2022,
• Your 2022 taxable income before amount on Form 8978, line 14, is nega- b. Age 18 at the end of 2022 and
the qualified business income deduction tive, see the instructions for Schedule 3 didn't have earned income that was more
is less than or equal to $170,050 (Form 1040), line 6l. than half of your support, or
($340,100 if married filing jointly); and c. A full-time student at least age 19
• Net tax liability deferred under
• You aren’t a patron in a specified section 965(i). If you had a net 965 in- but under age 24 at the end of 2022 and
agricultural or horticultural cooperative. didn't have earned income that was more
clusion and made an election to defer
If you don’t meet these requirements, your net 965 tax liability under section than half of your support.
use Form 8995-A, Qualified Business 965(i), check box 3 and enter (as a nega- 4. At least one of your parents was
Income Deduction. Attach whichever tive number) the amount of the deferred alive at the end of 2022.
form you use (Form 8995 or 8995-A) to net 965 tax liability and “965” on the 5. You don’t file a joint return in
your return. See the Instructions for line next to that box. 2022.
Forms 8995 and 8995-A for more infor- • Triggering event under section
mation for figuring and reporting your 965(i). If you had a triggering event un- A child born on January 1, 2005, is
qualified business income deduction. der section 965(i) during the year and considered to be age 18 at the end of
did not enter into a transfer agreement, 2022; a child born on January 1, 2004, is
Line 16 check box 3 and enter the amount of the considered to be age 19 at the end of
triggered deferred net 965 tax liability 2022; and a child born on January 1,
Tax and enter “965INC” on the line next to 1999, is considered to be age 24 at the
that box. end of 2022.
Include in the total on the entry space on Schedule D Tax Worksheet. Use the
line 16 all of the following taxes that ap- Do you want the IRS to figure the Schedule D Tax Worksheet in the In-
ply. tax on your taxable income for you? structions for Schedule D to figure the
• Tax on your taxable income. Fig- Yes. See chapter 13 of Pub. 17 for amount to enter on Form 1040 or
ure the tax using one of the methods de- details, including who is eligible and 1040-SR, line 16, if:
scribed later. what to do. If you have paid too much,
• You have to file Schedule D, and
• Tax from Form(s) 8814 (relating to we will send you a refund. If you didn't line 18 or 19 of Schedule D is more than
the election to report child's interest or pay enough, we will send you a bill. zero; or
dividends). Check the appropriate box. • You have to file Form 4952 and
• Tax from Form 4972 (relating to No. Use one of the following meth- you have an amount on line 4g, even if
lump-sum distributions). Check the ap- ods to figure your tax. you don’t need to file Schedule D.
propriate box. Tax Table or Tax Computation
• Tax with respect to a section 962 Worksheet. If your taxable income is But if you are filing Form 2555, you
election (election made by a domestic less than $100,000, you must use the must use the Foreign Earned Income
shareholder of a controlled foreign cor- Tax Table, later in these instructions, to Tax Worksheet instead.
poration to be taxed at corporate rates) figure your tax. Be sure you use the cor-

-33- Need more information or forms? Visit IRS.gov.