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Investors & landlords
No. I think you are asking about the Net Investment Income Tax on schedule 2 line 12. That is in addition to the tax on your income.
For the tax on 1040 line 16, There are like 7 different ways to calculate the tax.
It depends what kind of income you have. Even though the full amount shows up in the total income on the 1040 line 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it.
‎February 22, 2025
10:26 AM