Mr. sanjeev ghai was joint commissionr of income tex depatrtment Delhi.

2. REFERENCES.
 A. Tax Forms: 1040, Schedule SE, 6251, 4137, 5329,
5405, 8888, 8812,
 8863, Schedule H, Schedule M.
 B. Internal Revenue Code of 1986, as amended
(I.R.C.).
 C. Federal Income Tax Regulations (Treas. Reg.).
 D. IRS Publications:
 1. Pub. 17, Your Federal Income Tax.
 2. Pub. 926, Household Employer’s Tax Guide
 3. Pub. 531, Reporting Tip Income

3. INTRODUCTION
 OTHER TAXES
 A. Self-employment Tax (Schedule SE
 It does not include rental income (unless taxpayer is a real estate
 dealer), dividends, or capital gains.
 Individuals that had net earning from self-employment over
$400
 are subject to the tax
 Net earnings from self-employment consists the gross
 income derived from any trade or business, less allowable
 deductions attributable to the trade or business and the
 taxpayer’s distributive share of the ordinary income or loss
 of a partnership engaged in a trade or business. Treas. Reg.
 § 1.1402(a)-1.

4. FEDERAL INCOME TAX OVERVIEW
 FEDERAL INCOME TAX OVERVIEW.
 COMPUTATION STEPS
 GROSS INCOME
 Wages, salaries, tips; Taxable interest; Dividends;
 State & local tax refunds; Alimony received; Business income & losses;
 Capital gains & losses; Other gains & losses IRA distributions;
 Pension & annuities; Rents & Royalties; Farm income;
 Unemployment compensation Social security benefits; Other income
 - ADJUSTMENTS
 Educator expenses; Reservists, artists, gov. official expenses; Health savings
account deduction;
 Moving Expenses; IRA deduction; Student loan interest deduction;
 Tuition & fees deduction; One-half self-employment tax; SEP, SIMPLE &
Qualified Plans;
 Self-employed health insurance; Penalty on early withdrawal of savings;
Alimony paid

5. ADJUSTED GROSS INCOME
 = ADJUSTED GROSS INCOME
 - DEDUCTIONS
 Standard Deduction or
 Itemized Deductions
 Medical & dental expenses; Taxes paid; Interest paid;
 Charitable contributions; Nonbusiness casualty & theft losses; Job expenses & misc. deductions
 - EXEMPTIONS
 Taxpayer; Spouse; Dependents;
 = TAXABLE INCOME
 TAX
 - TAX CREDITS
 Foreign tax credit; Child & dependent care credit; Credit for elderly or disabled;
 Education credits; Retirement savings contrib. credit; Child tax credit;
 Adoption Credit; Mortgage interest credit; Residential energy credit;
 General business credit; Prior year minimum tax credit;
 + TAXES
 Self-employment tax; Social security & Medicare tax on tip income; Additional tax on IRAs, etc.;
 Household employment taxes;

6. PAYMENTS
 PAYMENTS
 Federal income tax withheld; Estimated tax payments;
Earned income credit;
 Excess social security tax withheld; Additional child
tax credit; First-time homebuyer credit;
 = FINAL TAX LIABILITY

7. 2011 NUMEROLOGY (REV. PROC.
2011-12; CCH 2011 U.S. MASTER
TAX GUIDE).
 A. There are six different marginal tax brackets for tax year
2011, and they are 10%,
 15%, 25%, 28%, 33%, and 35%.
 1. Single Individuals (other than Surviving Spouses and Heads of
 Households):
 Taxable Income Pay Marginal Tax Rate
 Over But Not Over
 $0 8,500 0 + 10% of amount over $0
 8,500 34,500 $850 + 15% of amount over $8,500
 34,500 83,600 $4,750 + 25% of amount over $34,500
 83,600 174,400 $17,025 + 28% of amount over $83,600
 174,400 379,150 $42,449 + 33% of amount over $174,400
 379,150 $110,016.50 + 35% of amount over $379,150