Fundamental and Current Tax Law

Free CFP Exam lesson in Tax Planning. 14 min read, ~2,155 words.

Six-step chain: Gross income - Adjustments = AGI - Deductions = Taxable income x Rates + AMT/NIIT - Credits = Tax due. Credits reduce tax dollar-for-dollar. A $1,000 credit beats a $1,000 deduction at every bracket. NIIT: 3.8% on the lesser of NII or MAGI excess over $200,000 (single) /...