This document summarizes chapters from a textbook on taxation of individuals and business entities. It discusses how to compute an individual's regular tax liability, alternative minimum tax liability, and other taxes such as the net investment income tax. It also explains how to calculate various tax credits for things like children, education, and earned income. Finally, it provides an example tax computation for an individual named Courtney to demonstrate how to apply the tax rates and brackets.
8. income − $461,700 end of 20 percent preferential
tax bracket; see preferential tax rate schedule for
head of household). The remaining $5,000 is taxed
at 15 percent (15 percent bracket for preferentially
tax income extends from $52,751 to $461,700 for
head of household).
Tax Computation Example