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According to
IRS documents
Net Tax Liability = line 57 + line 52
line 52 = Child Tax Credit (CTC)
line 57 = line 46 - line 42
line 42 = total Nonrefundable Credits (totNRC)
line 46 = line 44 + line 45
line 44 = Tax (calculated from line 43)
line 43 = Taxable Income
line 45 = AMT
So Net Tax Liability = Tax + AMT - totNRC + CTC
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What does all this mean?
- Net
Tax Liability is Tax + AMT - totNRC without the CTC
- If Tax + AMT = 0 then both
totNRC and CTC will be 0
- If the only
NRC is the CTC so that totNRC=CTC,
then
Net Tax Liability = Tax + AMT
- The EIC, Additional Child Tax Credit do
not reduce the Net Tax Liability
- Other Taxes, such as Self-Employment
Tax, Household employment tax are not considered part of Net Tax
Liability
- Line 63, Total Tax = Tax + AMT
+ Other Taxes is described as Net Tax Liability in
the article above.
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