Draft Excerpts From Form 1040 Family Of Instructions (Including Schedule Instructions) (Page 23 of 25) in pdf

Schedule D Tax Worksheet

Keep for Your Records

Complete this worksheet only if line 18 or line 19 of Schedule D is more than zero. Otherwise, complete the Qualified Dividends and Capital Gain

Tax Worksheet on page xx of the Instructions for Form 1040 to figure your tax.

Exception: Do not use the Qualified Dividends and Capital Gain Tax Worksheet or this worksheet to figure your tax if:

•

Line 15 or line 16 of Schedule D is zero or less and you have no qualified dividends on Form 1040, line 9b, or

•

Form 1040, line 42, is zero or less.

Instead, see the instructions for Form 1040, line 43.

1. Enter your taxable income from Form 1040, line 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter your qualified dividends from Form 1040, line 9b . . . . . .

3. Enter the amount from Form 4952, line 4g

4. Enter the amount from Form 4952, line 4e*

5. Subtract line 4 from line 3. If zero or less, enter -0- . . . . . . . . .

6. Subtract line 5 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . .

7. Enter the smaller of line 15 or line 16 of Schedule D . . . . . . . .

8. Enter the smaller of line 3 or line 4 . . . . . . . . . . . . . . . . . . .

9. Subtract line 8 from line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . .

10. Add lines 6 and 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

11. Add lines 18 and 19 of Schedule D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Enter the smaller of line 9 or line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

12.

13. Subtract line 12 from line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.

14. Subtract line 13 from line 1. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

15. Enter the smaller of:

• The amount on line 1 or

}

• $29,050 if single or married filing separately;

. . . . . . . . .

15.

$58,100 if married filing jointly or qualifying widow(er); or

$38,900 if head of household

16. Enter the smaller of line 14 or line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.

17. Subtract line 10 from line 1. If zero or less, enter -0- . . . . . . . . 17.

18. Enter the larger of line 16 or line 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

18.

If lines 15 and 16 are the same, skip lines 19 and 20 and go to line 21. Otherwise, go to line 19.

19. Subtract line 16 from line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

19.

20. Multiply line 19 by 5% (.05) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.

If lines 1 and 15 are the same, skip lines 21 through 33 and go to line 34. Otherwise, go to line 21.

21. Enter the smaller of line 1 or line 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.

22. Enter the amount from line 19 (if line 19 is blank, enter -0-) . . . . . . . . . . . . . . . . . . 22.

23. Subtract line 22 from line 21. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23.

24. Multiply line 23 by 15% (.15) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24.

If Schedule D, line 19, is zero or blank, skip lines 25 through 30 and go to line 31. Otherwise, go to line 25.

25. Enter the smaller of line 9 above or Schedule D, line 19 . . . . . . . . . . . . . . . . . . . . 25.

26. Add lines 10 and 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26.

27. Enter the amount from line 1 above . . . . . . . . . . . . . . . . . . . 27.

28. Subtract line 27 from line 26. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . 28.

29. Subtract line 28 from line 25. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

29.

30. Multiply line 29 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30.

If Schedule D, line 18, is zero or blank, skip lines 31 through 33 and go to line 34. Otherwise, go to line 31.

31. Add lines 18, 19, 23, and 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31.

32. Subtract line 31 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32.

33. Multiply line 32 by 28% (.28) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33.

34. Figure the tax on the amount on line 18. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . 34.

35. Add lines 20, 24, 30, 33, and 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.

36. Figure the tax on the amount on line 1. Use the Tax Table or Tax Computation Worksheet, whichever applies . . . . . . . . . . . . 36.

37. Tax on all taxable income (including capital gains and qualified dividends). Enter the smaller of line 35 or line 36. Also

enter this amount on Form 1040, line 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37.

*If applicable, enter instead the smaller amount you entered on the dotted line next to line 4e of Form 4952.