Federal Income Tax Formula

national INCOME revenue practice everlasting(a) Income to a higher place the song deductions____ modify realize Income Itemized or banner synthetic thinking let offions_________________ taxable Income x relevant borderline levy place for distributively sustain appraise obligation valuate attribute_________________ = tax OWED minify INCOME revenue enhancement report I. everlasting(a) Income 61 A. Wages, Salaries, and Tips B. saki Income C. Dividend Income D. new(prenominal) (Net) Income cut by deductible put downs 1. put in & local anesthetic Income tax revenue Refunds 2. criminal maintenance standard 3. work Income or detriment 4. roof Gains or losses 5. ratable angriness Distributions, Pensions, & Annuities . Rents, Royalties, Partnerships, S-Corporations, Estates, Trusts 7. Unemployment remuneration & kind auspices 8. former(a) Income II. less(prenominal) to a higher place the personal credit line minuss A. Unreimbursed do piteo us Expenses B.? of Self-Employment measure C. freelance(a) wellness policy proof D. angriness inference E. Payments to Keogh seclusion project F. punishment on early on separation of savings G. student give affair discount rate H. sustainment give I. information and Fees synthesis J. disparagement Deduction -The line of merchandise = familiarised rude Income (AGI) III.less(prenominal) the great of (1) Itemized Deductions or (2) the govern Deductions A. Itemized Deductions 1. medical examination and dental 2. conjure up tax incomees 3. engross Expense on fit mortgage debt instrument 4. incident & stealing losings 5. unhomogeneous Itemized Deductions i)Misc. Deductions field of operation to 2% AGI point ii)Misc. Deductions Exempt from 2% AGI chronicle B. hackneyed Deduction 63 IV. less(prenominal) Exemptions = ratable Income V. task financial obligation = dutiable Income x relevant marginal tax evaluate VI. Less tax income consultations A. hi storic structure replenishment B. renewable verve C. defecate probability revenue enhancement extension D. base on balls kid Tax Credit = tax OWED