Computation of Tax and Credits

Free CPA REG (Taxation & Regulation) lesson in Federal Taxation of Individuals. 22 min read, ~3,364 words.

Regular tax uses graduated brackets: 10/12/22/24/32/35/37 percent on taxable income (AGI minus the greater of standard or itemized deductions). Long-term capital gains and qualified dividends taxed at 0/15/20 percent under a separate stacked schedule, never at ordinary rates. Kiddie tax: a dependent child's net unearned income above \$2,700 (2025) taxed...