What goes in line #7 and how is it calculated?

Form 1040 (2018) Page 2 181.0001 Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 800 5b Standard deduction for- 6 185,250 Single or Married filing separately, $12,000 - 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest b Taxable interest 3a Qualified dividends b Ordinary dividends 4a IRAs, pensions, and annuities b Taxable amount 5a Social security benefits b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 3,450 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- 11 a Tax (see inst.) 21,397 (check if any from: 1. Form(s) 8814 2. Form 4972 3. b Add any amount from Schedule 2 and check here 12 a Child tax credit/credit for other dependents 2.000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter-O- 14 Other taxes. Attach Schedule 4 175,206 39,400 641 135,165 10. Married filing jointly or Qualifying widow(er), $24,000 11 21,397 Head of household, $18,000 2,600 18,797 87 18,884 21,000 If you checked any box 15 Total tax. Add lines 13 and 14 under Standard 16 Federal income tax withheld from Forms W-2 and 1099 deduction, see instructions. 17 Refundable credits: a EIC (see inst.) b Sch. 8812 C Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund... ...19 If line 18 is more than line 15. subtract line 15 from line 18. This is the amount you overpaid...... 21,000 2.116.. Required information 135,165 10,000 00 26 2 2d 2e 2f 2h 2m 2n negative amount.) 2a If filing Schedule A (Form 1040), enter the taxes from Schedule A line 7: otherwise, enter the amount from Form 1040, line 8 b Tax refund from Schedule 1 (Form 1040), line 10 or line 21 c Investment interest expense (difference between regular tax and AMT) d Depletion (Difference between regular tax and AMT) e Net operating loss deduction from Schedule 1 (Form 1040), line 21. Enter as a positive amount. f Alternative tax net operating loss deduction. g Interest from specified private activity bonds exempt from the regular tax h Qualified small business stock see instructions Exercise of incentive stock options (excess of AMT income over regular tax income) Estates and trusts (amount from Schedule K-1 (Form 1041). box 12, code A) k Disposition of property (Difference between AMT and regular tax gain or loss) Depreciation on assets placed in service after 1986 (Difference between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation costs (difference between regular tax and AMT) p Long-term contracts (difference between AMT and regular tax income) 9 Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) s Income from certain installment sales before January 1, 1987 t Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $718,800, see instructions.) Part II Alternative Minimum Tax (AMT) 5 Exemption. (If you were under age 24 at the end of 2018, see instructions.) IF your filing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household S 500,000 $ 70,300 Married filing jointly or qualifying widow(er) 1,000,000 109,400 Married filing separately 500,000 54,700 If line 4 is over the amount shown above for your filing status, see instructions. 8 Subtract line 5 from line 4. If more than zero go to line 7. If zero or less, enter -- here and on lines 7, 9, and 11, and go to line 10 7. If you are filing Form 2555 or 2555-EZ see instructions for the amount to enter. . If you reported capital gain distributions directly on Schedule 1 (Form 1040), line 13: you reported qualified dividends on Form 1040, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part Ill on the back and enter the amount from line 40 here. . All others: Ifline is $191,100 or less ($95.550 or less if married filing separately), multiply line 8 by 28% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,822 ($1.911 if married filing separately) from the result. 2r 2s 144.965 111,700 33,265 8 Alternative minimum tax foreign tax credit (see instructions) 9 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040, line 11a (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 46. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), line 48. If you used Schedule J to figure your tax on Form 1040, line 11a, refigure that tax without using Schedule J before completing this line see instructions 21,397 11 AMT. Subtract line 10 from line 9. IF zero or less, enter -- Enter here and on Schedule 2 (Form 1040), line 45 Form 1040 (2018) Page 2 181.0001 Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. 800 5b Standard deduction for- 6 185,250 Single or Married filing separately, $12,000 - 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest b Taxable interest 3a Qualified dividends b Ordinary dividends 4a IRAs, pensions, and annuities b Taxable amount 5a Social security benefits b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 3,450 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- 11 a Tax (see inst.) 21,397 (check if any from: 1. Form(s) 8814 2. Form 4972 3. b Add any amount from Schedule 2 and check here 12 a Child tax credit/credit for other dependents 2.000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter-O- 14 Other taxes. Attach Schedule 4 175,206 39,400 641 135,165 10. Married filing jointly or Qualifying widow(er), $24,000 11 21,397 Head of household, $18,000 2,600 18,797 87 18,884 21,000 If you checked any box 15 Total tax. Add lines 13 and 14 under Standard 16 Federal income tax withheld from Forms W-2 and 1099 deduction, see instructions. 17 Refundable credits: a EIC (see inst.) b Sch. 8812 C Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund... ...19 If line 18 is more than line 15. subtract line 15 from line 18. This is the amount you overpaid...... 21,000 2.116.. Required information 135,165 10,000 00 26 2 2d 2e 2f 2h 2m 2n negative amount.) 2a If filing Schedule A (Form 1040), enter the taxes from Schedule A line 7: otherwise, enter the amount from Form 1040, line 8 b Tax refund from Schedule 1 (Form 1040), line 10 or line 21 c Investment interest expense (difference between regular tax and AMT) d Depletion (Difference between regular tax and AMT) e Net operating loss deduction from Schedule 1 (Form 1040), line 21. Enter as a positive amount. f Alternative tax net operating loss deduction. g Interest from specified private activity bonds exempt from the regular tax h Qualified small business stock see instructions Exercise of incentive stock options (excess of AMT income over regular tax income) Estates and trusts (amount from Schedule K-1 (Form 1041). box 12, code A) k Disposition of property (Difference between AMT and regular tax gain or loss) Depreciation on assets placed in service after 1986 (Difference between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation costs (difference between regular tax and AMT) p Long-term contracts (difference between AMT and regular tax income) 9 Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) s Income from certain installment sales before January 1, 1987 t Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $718,800, see instructions.) Part II Alternative Minimum Tax (AMT) 5 Exemption. (If you were under age 24 at the end of 2018, see instructions.) IF your filing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household S 500,000 $ 70,300 Married filing jointly or qualifying widow(er) 1,000,000 109,400 Married filing separately 500,000 54,700 If line 4 is over the amount shown above for your filing status, see instructions. 8 Subtract line 5 from line 4. If more than zero go to line 7. If zero or less, enter -- here and on lines 7, 9, and 11, and go to line 10 7. If you are filing Form 2555 or 2555-EZ see instructions for the amount to enter. . If you reported capital gain distributions directly on Schedule 1 (Form 1040), line 13: you reported qualified dividends on Form 1040, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part Ill on the back and enter the amount from line 40 here. . All others: Ifline is $191,100 or less ($95.550 or less if married filing separately), multiply line 8 by 28% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,822 ($1.911 if married filing separately) from the result. 2r 2s 144.965 111,700 33,265 8 Alternative minimum tax foreign tax credit (see instructions) 9 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040, line 11a (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 46. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), line 48. If you used Schedule J to figure your tax on Form 1040, line 11a, refigure that tax without using Schedule J before completing this line see instructions 21,397 11 AMT. Subtract line 10 from line 9. IF zero or less, enter -- Enter here and on Schedule 2 (Form 1040), line 45