Lesson 4 of 7
In Progress

Other Taxes

Chris Test January 4, 2021

“Other taxes” are different from the income tax from the tax tables or
figured using the Tax Computation Worksheet. They include, but are not limited to:

  • Self-employment tax
  • Social Security and Medicare taxes on tip income
  • Additional taxes on IRAs and other qualified retirement plans
  • Repayment of the first-time homebuyer credit

Other taxes are listed on Form 1040 after non-refundable credits, and non-refundable credits do not reduce the amount of other taxes levied. Most of the other taxes are calculated automatically based on other items we have already covered (additional taxes on an early distribution from a retirement account, self-employment taxes for self-employed individuals, etc.) Other taxes are reported on the Schedule 2, part 2, and are carried to line 23 of the Form 1040.

First-time Homebuyers Credit

If the taxpayer received the first-time homebuyer credit for a home purchased in 2008, generally they must
repay the credit over a 15-year period in 15 equal installments. The repayment period began in 2010.
However, if the home ceases to be the taxpayer’s main home before the 15-year period is up, the taxpayer
must repay all remaining annual installments. The home ceases to be the main home:

  • If the taxpayer sells the home
  • Converts the entire home to business or rental property;
  • The home is destroyed, condemned, or disposed of under threat of condemnation; or
  • The lender forecloses on the mortgage