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Computing the tax: AMT, NIIT and other taxes

SEE 1 Chapter 20 · IRS outline 4A1, 4A2, 4A5, 4A8, 4A9, 4A10, 4A11, 4A12

Once taxable income is known, the tax isn't just the bracket table. Grace's stock options trigger the alternative minimum tax, the Muellers' big asset sale brings the 3.8% net investment income tax, the Okafors' combined earnings pass the Additional Medicare threshold, Rose hires a caregiver, Grace worked two jobs and over-withheld Social Security, and Rose's sister left her an IRA. Schedule 2 collects these 'other taxes', and Nadia makes Theo walk through it line by line.

In this chapter

1. Computing the regular tax
2. The alternative minimum tax and the prior-year credit
3. The net investment income tax and the Additional Medicare tax
4. Household employees and Schedule H
5. Excess Social Security withholding and uncollected FICA
6. Income in respect of a decedent and the final return
7. Other taxes on Schedule 2, including the first-time homebuyer credit repayment

This chapter has 7 lessons and 75 practice MCQs with explanations, plus flashcards and a recall sheet.

What this chapter covers

• Tax rates and capital gain rates
• alternative minimum tax and the prior-year credit
• household employees
• excess Social Security
• income in respect of a decedent
• net investment income tax
• additional Medicare tax
• uncollected FICA
• other taxes

Chapter 19: Premium tax credit and other credits · Chapter 21: Payments, penalties, amended returns and spouse relief