Upon completing this chapter, you should be able to:
LO 7-1
Determine a taxpayer's regular tax liability and identify tax
issues associated with the process.
LO 7-2
Compute a taxpayer's alternative minimum tax liability and
describe the tax characteristics of taxpayers most likely to
owe the alternative minimum tax.
LO 7-3
Calculate a taxpayer's employment and self-employment taxes
payable and explain tax considerations relating to whether a
taxpayer is considered to be an employee or a self-employed
independent contractor.
LO 7-4
Describe the different general types of tax credits, identify
specific tax credits, and compute a taxpayer's allowable child tax
credit, child and dependent care credit, American opportunity
credit, lifetime learning credit, and earned income credit.
LO 7-5
Explain taxpayer filing and tax payment requirements and
describe in general terms how to compute a taxpayer's
underpayment, late filing, and late payment penalties.
