Ernst & Young Tax Guide 2018, 33rd Edition

Chapter 31 How to figure your tax

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• Figuring Your Tax
• Alternative Minimum Tax
• Additional Medicare Tax
• Net Investment Income Tax (NIIT)
• Tax Figured by IRS
  • Filing the Return

Note

IRS Publication 17 (Your Federal Income Tax) has been updated by Ernst & Young LLP for 2017. Dates and dollar amounts shown are for 2017. Underlined type is used to indicate where IRS text has been updated. Places where text has been removed are indicated by the sentence: Text intentionally omitted.

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Ernst & Young LLP will update the EY Tax Guide 2018 website with relevant taxpayer information as it becomes available. You can also sign up for email alerts to let you know when changes have been made.

Introduction

This chapter explains how to calculate your tax liability under all three available tax forms—Form 1040EZ, Form 1040A, and Form 1040. It will help you decide which of the forms to file.

In particular, you should review the section of this chapter on the alternative minimum tax to determine if that tax may apply to you.

What’s New

Standard deduction amount increased for 2017. The personal standard deduction amount for tax years beginning in 2017 is increased to $6,350 for unmarried taxpayers, $12,700 for married taxpayers filing jointly or certain surviving spouses, $9,350 for heads of household, and $6,350 for married taxpayers filing separately.

Alternative Minimum Tax (AMT) exemption amount increased. For 2017, the exemption amounts for ...