Calculation of tax on Form 1040, line 16

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The tax computation for Line 16 of Form 1040 can be calculated in one of four ways:

  1. Tax Tables. You can find them in the Form 1040 Instructions.
  2. Qualified Dividend and Capital Gain Tax Worksheet. To see this select Forms View, then the DTaxWrk folder, then the Qualified Div & Cap Gain Wrk tab. Per the IRS Form 1040 Instructions, this worksheet must be used if:
    • The taxpayer reported qualified dividends on Form 1040, Line 3a.
    • The taxpayer does not have to file Schedule D and he/she reported capital gain distributions on Form 1040, line 7. The taxpayer does not have to file Schedule D if both of the following apply:
      • The only amounts they have to report on Schedule D are capital gain distributions from Form(s) 1099-DIV, Box 2a or substitute statement(s).
      • None of the Forms 1099-DIV or substitute statements have an amount in Boxes 2b, 2c or 2d.
    • The taxpayer is filing Schedule D and Schedule D, Lines 15 and 16 are both more than zero.
  3. Schedule D Tax Worksheet. To see this worksheet, select Forms View, then the DTaxWrk folder, then the Capital Gain Tax Wrk tab.
  4. Foreign Earned Income Tax Worksheet. To see this worksheet, select Forms View, then the 2555Tax folder, then the Foreign Earned Income Tax Wrk tab.

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