Discuss why Ordinary rates, should the tax be included in Line 23 of Form 1040 and recorded in Schedule 2 under “Any other taxes”?State sales taxes paid 370 State income taxes paid 1,450 Charitable contributions of cash 1,750 Political contributions 550 Three comments that might help: Qualified dividends are included in ordinary dividends on the form 1040. You are not required to complete the Schedule D Worksheet. Just consult the last example in “drnos Capital Gain calcs 2023.ppt” to calculate the tax. Claim the QBI deduction on the appropriate line of the Form 1040, but no additional form is required. Use the 2022 tax forms. Use 2023 tax rates and standard deduction, if applicable. The forms can be found here: https://www.irs.gov/pub/irs-pdf/f1040.pdf https://www.irs.gov/pub/irs-pdf/f1040s1.pdf https://www.irs.gov/pub/irs-pdf/f1040sa.pdf https://www.irs.gov/pub/irs-pdf/f1040sd.pdf https://www.irs.gov/pub/irs-pdf/f1040sse.pdf https://www.irs.gov/pub/irs-pdf/f1040sc.pdf These are fillable forms, so you can fill them in online, print them and write them out, or use tax preparation software. Once complete, print them and submit on paper in class. Question I asked: Since the dividends would not be taxed at ordinary rates, should the tax be record in Schedule 2 under “Any other taxes” and listed in Line 23 of Form 1040? Or should the tax on dividends just be added to the tax on ordinary income and simply listed on Line 16 of Form 1040? Answer: The latter. The income tax on the for of the Form 1040 includes the ordinary tax and the capital gains/dividends tax without any explanation. Technically, you would complete the worksheet at the end of the instructions to Schedule D (https://www.irs.gov/instructions/i1040sdLinks to an external site.), which is unbelievably complex for a simple calculation. Don’t do that! Just take, as you suggest, the: Tax on ordinary income, Add: tax on dividends at capital gains rate, Equals: Income tax on Line 23.
