 Most of this information comes from the form 1040 Instructions Tax Year 2022. You can find on the IRS website, irs.gov, irs.gov. Looking at the income tax formula, we're focused down here on tax before credits and other taxes. Now remember, the first half of the income tax formula is in essence an income statement, although a strange one where we have income minus the adjustments to income, which you can think of as the above the line deductions getting us to the subtotal of adjusted gross income minus the greater of the standard or itemized deductions to get us to the taxable income, which is similar to net income in a normal income statement structure. We're gonna take that net income as you would expect in an income tax system and apply the tax rates to it. However, that's more complicated than you would think at first because it's not a flat tax that we will be using. We have a progressive tax system, which means that we might have multiple taxes, tax rates that are applied to the same income level. So we talked a little bit about a progressive tax system versus a flat tax system and prior presentations, but just note that it can get somewhat complicated to try to figure out what the actual tax is without the use of, you can use tables, for example, to kind of figure out the tax. And of course, we can use software to help us to figure out the tax as well. And also realize that once we figure the tax, we're not done there, that's not it, because we also have the credits that we have to deal with down here, the credits that are going to be the non-refundable credits that we'll deal with. We also have other taxes we might have to deal with, such as the self-employment tax. And then we could have the refundable credits that we have to deal with, as well as the payments that we have already made through withholdings or estimated tax payments to get down to the bottom line. All right, so that said, we're moving on to the tax calculation, line 16. This is the second page of the form 1040. We're focused then on this tax calculation. We often rely heavily on tax software to help us with that tax calculation because we'll be using at minimum that progressive tax structure to do the calculation. Plus, we might have certain items of income that are being taxed in other formats, such as qualified dividends might have a more favorable rate as opposed to ordinary income rates, capital gains, for example, might be taxed at more favorable rates than the ordinary income rates. So the actual tax calculation on the net income that we got to can get quite complicated. All right, line 16, tax. So include in the total on the entry space on line 16 all the following taxes that apply. Tax on your taxable income, figure the tax using one of the methods described later. Tax from form 8814 relating to the election to report child's interest or dividends. Check the appropriate box. Tax from form 4972 relating to lump some distributions. Check the appropriate box. Tax with respect to a section 962 election, made by a domestic shareholder of a controlled foreign corporation to be taxed at corporate rates, reduced by the amount of any foreign tax credits claimed on form 1118, C section 962 for details. Check box three and enter the amount and 962 in the space next to the box. So that's a more unusual situation on that one. So recapture of an election credit. You may owe this tax if you claim an education credit in an earlier year and either tax free educational assistance or a refund of qualified expenses was received in 2022 for the student. So once again, these are somewhat more unusual situations. C form 8863 for more details, obviously of tax software can help us with some of these situations as well. So any tax from form 8621 line 16E relating to a section 1291 fund, check box three and enter the amount of the tax and 1291 tax in the space next to the box. Tax from form 8978 line 14 relating to partners audit liability under section 6226 check box three and enter the amount of the liability and quote form 8978 in the space next to the box. Net tax liability deferred under section 965 I. So if you had a net 965 inclusion and made an election to defer your net 965 tax liability under section 965 I check box three and enter as a margin as a negative number. So triggering event under section 965 I if you had a triggering event under section 965 I during the year and did not enter your transfer agreement, check box three and enter the amount of the triggered deferred net 965 tax liability and enter quote 965 INC end quote on the line next to that box.