News — IRS

The Tax Formula for Individuals: This is just a basic explanation of the tax formula for individual tax payers. I hope someone can find this information useful when trying to understand taxes better. Individual tax payers calculate their tax in accordance with a tax formula. Understanding the formula is important, since all tax determinations are based on the result. The formula is as follows: GROSS INCOME -DEDUCTIONS FOR AGI (adjusted gross income) =AGI -GREATER OF ITEMIZED DEDUCTIONS OR STANDARD DEDUCTION -EXEMPTIONS =TAXABLE INCOME x TAX RATE (using appropriate tax tables or rate schedules) =GROSS TAX LIABILITY -TAX CREDITS AND PREPAYMENTS...

In 2010, Additional Child Tax Credit can help you get more refund from IRS or can reduce your tax liabilities significantly. But such credit for tax cannot be used by everyone. There are certain IRS rules behind this form of credit for tax returns. Additional Child tax credit is for individuals who get less than the full amount of the 2010 tax credit for child. For getting the additional you should be sure that you figured out the amount of child tax benefit, if applicable, since that information is very important in finding how much additional credit can you get....