Page 108 - 2020 Publication 17

Page 106 of 138 Fileid: … ations/P17/2020/A/XML/Cycle03/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.

Part Four. 14:38 - 19-Jan-2021

Figuring Your The two chapters in this part explain how to figure your tax. They also
discuss tax credits that, unlike deductions, are subtracted directly from your
Taxes, and tax and reduce your tax dollar for dollar.

Refundable and The Form 1040 and 1040-SR schedules that are discussed in these
chapters are:
Nonrefundable • Schedule 1, Additional Income and Adjustments to Income;
• Schedule 2, Additional Taxes; and
Credits • Schedule 3, Additional Credits and Payments.

972 972 Child Tax Credit and Credit for Other 8959 8959 Additional Medicare Tax
Dependents
13. 974 974 Premium Tax Credit (PTC) 8960 Estates, and Trusts
8960 Net Investment Tax—Individuals,
Form (and Instructions) 8962 8962 Premium Tax Credit (PTC)
How To Figure W-2 W-2 Wage and Tax Statement Figuring Your Tax

Your Tax Schedule SE (Form 1040) Schedule SE (Form 1040) Self Your income tax is based on your taxable in-
Employment Tax
1116 1116 Foreign Tax Credit come. After you figure your income tax and
AMT, if any, subtract your tax credits and add
Introduction 3800 3800 General Business Credit any other taxes you may owe. The result is your
total tax. Compare your total tax with your total
After you have figured your income and deduc- 4136 4136 Credit for Federal Tax Paid on Fuels payments to determine whether you are entitled
tions your next step is to figure your tax. This 4970 4970 Tax on Accumulation Distribution of to a refund or must make a payment.
chapter discusses: Trusts This section provides a general outline of
• The general steps you take to figure your 5329 5329 Additional Taxes on Qualified Plans how to figure your tax. You can find
tax, (Including IRAs) and Other step-by-step directions in the Instructions for
• An additional tax you may have to pay Tax-Favored Accounts Forms 1040 and 1040-SR.
called the alternative minimum tax (AMT), 5405 5405 Repayment of the First-Time Tax. Most taxpayers use either the Tax Table
and Homebuyer Credit or the Tax Computation Worksheet to figure
• The conditions you must meet if you want 5695 5695 Residential Energy Credit their income tax. However, there are special
the IRS to figure your tax. methods if your income includes any of the fol-
5884 5884 Work Opportunity Credit lowing items.
Useful Items 8396 8396 Mortgage Interest Credit • A net capital gain. See Pub. 550.
You may want to see: 8801 8801 Credit for Prior Year Minimum • Qualified dividends taxed at the same
Tax—Individuals, Estates, and Trusts rates as a net capital gain. See Pub. 550.
Publication 8835 8835 Renewable, Electricity, Refined • Lump-sum distributions. See Pub. 575.
503 503 Child and Dependent Care Expenses Coal, and Indian Coal Production • Farming or fishing income. See Schedule J
505 505 Tax Withholding and Estimated Tax Credit (Form 1040).
524 524 Credit for the Elderly or Disabled 8839 8839 Qualified Adoption Expenses • Tax for certain children who have un-
earned income. See Pub. 929.
8846 Credit for Employer Social Security
525 525 Taxable and Nontaxable Income 8846 and Medicare Taxes Paid on Certain • Parent's election to report child's interest
531 531 Reporting Tip Income Employee Tips and dividends. See Pub. 929.
550 550 Investment Income and Expenses 8853 8853 Archer MSAs and Long-Term Care • Foreign earned income exclusion or the
housing exclusion. (See Form 2555, For-
Insurance Contracts
560 560 Retirement Plans for Small Business eign Earned Income, and the Foreign
8880 8880 Credit for Qualified Retirement Earned Income Tax Worksheet in the In-
575 575 Pension and Annuity Income Savings Contributions structions for Forms 1040 and 1040-SR.)
596 596 Earned Income Credit (EIC) 8885 8885 Health Coverage Tax Credit Credits. After you figure your income tax and
926 926 Household Employer’s Tax Guide 8889 8889 Health Savings Accounts (HSAs) any AMT (discussed later), determine if you are
eligible for any tax credits. Eligibility information
929 929 Tax Rules for Children and 8910 8910 Alternative Motor Vehicle Credit for these tax credits is discussed in other publi-
Dependents cations and your form instructions. The follow-
8912 8912 Credit to Holders of Tax Credit ing items are some of the credits you may be
969 969 Health Savings Accounts and Other Bonds able to subtract from your tax and shows where
Tax-Favored Health Plans 8936 8936 Qualified Plug-In Electric Drive you can find more information on each credit.
970 970 Tax Benefits for Education Motor Vehicle Credit • Adoption credit. See Form 8839.
Page 104 Chapter 13 How To Figure Your Tax