The logic behind the various additions and subtractions I assume are to use the proper tax rate for the various levels of income and differernt types of capital gains, and types of dividends. And this worksheet then references the "Tax Computation Worksheet" which it self is not easy to find. Nor is it clear exactly what that worksheet does. But in the end it spits out the Federal Tax you are due.
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The primary purpose of the worksheet is to calculate the tax on your qualified dividends and capital gain income, that can differ from the tax on your other "ordinary " income. Qualified dividends are treated as capital gain income and taxed accordingly. Capital gains are typically taxed as 0, 15 or 20%, which differs from your ordinary income. The worksheet shows you how that portion of your tax is calculated along with the rest of your income tax.
Thanks for answer I wish some worksheets would say or describe what they are doing
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