 Okay, so do you want the IRS to figure the tax on your taxable income for you? If you can say yes, see chapter 13 of publication 17 for details, including who is eligible and what to do. If you have paid too much, we will send you a refund. If you don't pay enough, we will send you a bill. No, use one of the following methods to figure your tax. Now, usually you're going to say no these days because hopefully you got tax software to help you to be calculating the tax. So that's so you can usually going to be using the tax software to calculate the tax and then you want to be able to understand the calculation so that you can explain it to others and feel that you understand what's going on yourself even though as we can see it can get somewhat complicated to do the tax calculation due to the progressive tax system and these other kind of taxes that could be applied in the different tax systems that could be applied to different kinds of taxes. All right, so we got the tax table or tax computation worksheet. So if your taxable income is less than 100,000, you must use the tax table later in these instructions to figure your tax. So you can actually look at the instructions for the form 1040 and look at the tax tables if your income is under the 100,000 and that will give you the tax calculation. The tables are a little bit deceiving because basically what they did is they've done the calculation kind of already and then they've put it into a table format so you can you can look at your income and the related tax for that income threshold kind of is is the idea but you lose from using the table the whole concept of the progressive tax because it's like okay well what's my tax rate that you gave me. I can try to look at the tax calculation from the table divided by my taxable income to figure the rate but that would only give me the average rate what really they're doing here is a progressive tax rate your income being taxed at multiple rates for different levels of the income in a step kind of format. So be sure to use the correct column if your taxable income is 100,000 or more use the tax computation worksheet right after the tax table. So the tax computation worksheet if you have to use that gives you a better idea of the fact that you're using a progressive kind of tax system although they'll still try to simplify the calculation by saying by giving you like the bottom line number and then only making you calculate the tax on the highest on your highest tax bracket on your marginal tax rate so they can still simplify it a little bit in that way then a little bit easier than if you had to calculate the whole progressive tax system for every tier of tax rates. However don't use the tax table or tax computation worksheet to figure your tax if any of the following applies form 8615 form 8615 must generally be used to figure the tax on your unearned income over 2300 if you are under age 18 and in certain situations if you are older so you must file form 8615 if you meet all the following conditions one you had more than 2300 of unearned income such as taxable interest ordinary dividends or capital gains including capital gain distributions two you are required to file a tax return three you are either a under age 18 at the end of 2022 this becomes a problem because you might be able to be claimed as a dependent and whatnot in that case b age 18 at the end of 2022 and didn't have earned income that was more than half of your support see a full-time student at at least age 19 but under 24 at the end of 2022 and didn't have earned income that was more than half your support so you could see how these kind of mirror the dependent some of the dependent dependency requirements to be a dependent of someone else so four at least one of your parents was alive at the end of 2022 five you didn't file a joint return in 2022 so you which would indicate you weren't married so a child born on january 1st 2000 five is considered to be age 18 at the end of 2022 a child born january 1st 2020 2004 is considered to be age 19 at the end of 2022 and a child born in jan on january 1st 1999 is considered to be age 24 at the end of 2022 so sometimes you have those cutoff issues when people are born right on the cutoff so schedule d tax worksheet so use the schedule d tax worksheet in the instructions for schedule d to figure the amount to enter on form 1040 or 1040 sr line 16 if you did you did file a schedule d and line 18 or 19 of the schedule is more than zero why would this be the case because the schedule d has to do with capital gains and losses usually with the sale of stocks for example and that means you might have long-term capital gains long-term capital gains as we discussed before could have more favorable tax rates than your ordinary income tax rates so now the income from schedule d is still going to be flowing in to your taxable income but they're not going to be taxed at the same progressive tax rates because they're not going to be ordinary income you got to break that income out separate to be taxing it at the other income rate for the capital gain rates so you have to file form 4952 and you have an amount on line 4g even if you don't need to file schedule d so but if you are filing form 2555 you must use the foreign earned income tax worksheet instead so then we got the qualified dividends in capital gain tax worksheet so use the qualified dividends in capital gains tax worksheet later to figure your tax if you don't have to use the schedule d tax worksheet and if any of the following applies you report qualified dividends on form 1040 or 1040 s r line 3a now why does this the case because if you have qualified dividends you might get a favorable tax treatment in terms of the tax rate applied to the qualified dividends so the qualified dividends are still going to be income included in taxable income but you just can't apply the normal progressive crazy tax tables to them because you might get a favorable tax rate and therefore you got to break out the qualified dividends so that you can multiply that part times the progressive tax structure related to the qualified dividends themselves as opposed to the ordinary income qualified progressive tax stuff okay so any case you don't have to file schedule d and report capital gain distributions on form 1040 or 1040 s r line 7 you are filing schedule d and schedule d lines 15 and 16 are both more than zero but if you are filing form 2555 you must use the earned income worksheet tax worksheet instead the foreign earned income because you have foreign earned income in that case all right schedule j if you had income from farming or fishing here we go with the farming and fishing again special industry so if you're in the area of farming and fishing you can be a specialist oftentimes in those cases because there's a lot of differences including certain amounts received in connection with the exon valdez litigation your tax may be less if you choose to figure it using income averaging on schedule j foreign earned income tax worksheet if you claim the foreign earned income exclusion housing exclusion or housing deduction on form 2555 you must figure your tax using the foreign earned income tax worksheet so there you have it clears the snow that's been driven snow