 Income tax 2021-2022 tax line 16 part number one get ready to get refunds to the max dive it into income tax 2021-2022 most of this information can be found in the form 1040 instructions tax year 2021 on the IRS website irs.gov irs.gov income tax formula we're looking at the tax line down below on the income tax formula with regards to the form 1040 we're looking at page two line 16 specifically on page number two tax line 16 include in the total on the entry space online 16 all of the following taxes that apply that would include tax on your taxable income so that would be obviously your federal income tax being calculated here figuring the tax can be a little bit complex we talked about that briefly in prior presentations we often rely on the software to do that calculation because we have the progressive tax system which can complicate things because we have the same amount of the income being taxed at different rates we also might have some components of the taxable income that are actually taxed using different rates different progressive schedules in essence things like possibly capital gains things like possibly qualified dividends which also complicates the calculation so software of course in practice will be helping most people to do the tax calculation there although you want to understand the concept as we talked about before of the progressive tax system and when you have certain taxes or certain income amounts that will be subject to different taxations oftentimes more favorable taxation methods and why so that you can do effective tax planning into the future and explain that to clients then we have tax from forms eight eight one four that's related to the election to report a child's interest or dividends we have the tax from form four nine seven two relating to lump some distributions and then tax with respect to a section nine six two election election made by 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 one one one eight you can see section nine six two for details there you would check box three and enter the amount and nine six two in the space next to the box recapture of an education credit you may owe this tax if you claimed an education credit in an earlier year and either tax free educational assistance or a refund of qualified expenses was received in two thousand twenty one for the student so in other words you claimed a credit in the prior year the credit is kind of like a dollar for dollar deduction and then you got the money back and the following year now you're in that same kind of situation where you basically got a benefit in the prior year and now you got the money back in the current year it's similar to like the state deduction for the state refund that we talked about in a schedule a kind of situation so so what do you do do you go back to the prior year and say okay I didn't really get that deduction because they gave me the money back you can amend the prior year tax return but that's usually the tedious thing to do that's not the way we want to go most of the time if it would be easier if we can go forward and then make the adjustment in the current year which is going to be the idea here so C form eight eight six three for more details checkbox three and enter the amount and ECR in the space next to that box any tax from form eight six two one line sixteen E related to section twelve ninety one fund checkbox three and enter the amount of the tax and the twelve ninety one tax in the space next to the box reporting any report repayment of any excise advance payments of the health coverage tax credit from form eight eight eight five checkbox three into the amount of the repayment and HCTC and the space next to that box tax from form eight nine seven eight line fourteen relating to partners audit liability under section six two two six you would checkbox three and enter the amount of the liability and quote form eight nine seven eight in quote in the space next to that box if the amount on form eight nine seven eight line fourteen is negative see the instructions for schedule three form ten forty line six I net tax liability deferred under section nine six five I if you had a net nine six five inclusion and made an election to defer your net nine six five tax liability under section nine six five a I check box three and enter as a negative number the amount of the deferred net nine six five tax liability and nine six five on the line next to that box a triggering event under section nine six five I if you had a triggering event under section nine six five I during the year and did not enter into a transfer agreement checkbox three and enter the amount of the triggering deferred net nine six five tax liability and enter nine six five I in see on the line next to the box