After you have subtracted the tax credits for which you qualify, you may be required to add to your tax liability any of several types of other taxes. The "Other Taxes" section of Form 1040 lists several possible additions you may have to consider.

Self-Employment Tax

If you were self-employed and had net earnings of more than $400 in 1987, you must complete Schedule SE to determine if you owe any Social Security tax on those earnings.

If you earned $43,800 or more in salary or wages subject to Social Security withholding, you have already reached the ceiling for 1987 and are not liable for Social Security tax on additional earnings from self-employment. But you must still attach Schedule SE to your tax return to show the numbers.

The effective rate of tax on earnings from self-employment is 12.3 percent, unchanged from the 1986 rate. If you end up with any tax liability on this schedule, transfer the amount from line 14 of Schedule SE to line 48 of Form 1040, where it gets added to your total tax liability.

Do not send either Schedule SE or any tax due to the Social Security Administration. The IRS is responsible for transferring both the payment and the information from Schedule SE to the Social Security Administration.

If you're filing a joint return, be sure to enter on Schedule SE the name and Social Security number of the person with the income from self-employment -- even if other forms or schedules show the other spouse's Social Security number.

Alternative Minimum Tax

The alternative minimum tax was established to reduce the opportunity for taxpayers to avoid income tax liability by the use of sophisticated -- but legal -- techniques for sheltering income.

"Tax preference items" include such things as incentive stock options, certain forms of accelerated depreciation and depletion, some types of tax-exempt interest and dividends, selected itemized (Schedule A) deductions and the untaxed appreciation in value of contributed property.

The tax is computed on Form 6251 by modification of your normal adjusted gross income to account for these tax preference items. To exclude taxpayers with small amounts of tax preference items, the law provides an initial exemption, unchanged from last year, of $30,000 for a single taxpayer, $40,000 on a joint return or for a surviving spouse or $20,000 for a married person filing separately.

But the exemption amount is phased out at the rate of 25 cents for every dollar that your "alternative minimum taxable income" (AMTI) exceeds specified amounts: $112,500 for single taxpayers, $150,000 on a joint return or $75,000 if you're married filing separately.

If you had tax preference income in 1987, you must complete Form 6251 and attach it to your return even if no liability for the alternative minimum tax results. If you do end up with a tax, carry the amount to line 49 of Form 1040.

ITC Recapture

The investment tax credit was eliminated, beginning in 1987, by the 1986 tax law. However, if you took an investment tax credit in a prior year but disposed of the property before the expiration of its normal life, you may have to repay a part of the credit taken earlier. Use Form 4255 for the calculations and carry any required recapture amount to line 50 of Form 1040.

Tip Income

Use Form 4137 to compute any Social Security tax liability on tips you received but didn't report to your employer, or on tips you had reported but on which your employer had not withheld the tax. Carry any tax due to line 51 of Form 1040.

Early IRA Withdrawal

A 10 percent penalty is imposed on funds withdrawn from an IRA (or other qualified retirement plan) before reaching age 59 1/2. The penalty is computed on Form 5329, then carried to Form 1040, line 52.

There are exceptions for which the penalty is waived. IRA funds may be withdrawn without penalty by the owner of an IRA in the event of disability, or by the beneficiary after death of the owner.

In addition, the penalty is not imposed if the early distribution is part of a scheduled series of substantially equal periodic payments for the life of the owner or the joint life of the participant and beneficiary. (The waived tax penalty is recaptured if the distribution method is changed before the owner reaches age 59 1/2 or before the distribution has been in effect five years.)

Advance EIC Payments

If you received advance payments from your employer in 1987 against an anticipated earned income (EIC) credit, do not offset those advance payments against any credit you now calculate you are due. (You will claim the full amount of EIC due in the "Payments" section, as explained below.)

Instead, enter the total of those advance income payments (as shown on Form W-2 from your employer) in the "Other Taxes" section by writing "AEIC" and the amount received on the dotted line on line 53 of Form 1040. Then include that amount in the right-hand column of line 53, "Total tax," along with the amounts from lines 47 through 52. (If you're using the 1040A, follow the same procedure, using line 20.)

CHILD AND DEPENDENT CARE CREDIT

------------------------ 1 --% of expenses you may claim

------------------------ 2 --Maximum credit one person

------------------------ 3 --Maximum credit more than one person

If your AGI is between:------- 1 -------- 2 ---------- 3 -------

$0-10,000.....................30%........$720........$1,440.....

$10,001-12,000................29%........$696........$1,392.....

$12,001-14,000................28%........$672........$1,344.....

$14,001-16,000................27%........$648........$1,296.....

$16,001-18,000................26%........$624........$1,248.....

$18,001-20,000................25%........$600........$1,200.....

$20,001-22,000................24%........$576........$1,152.....

$22,001-24,000................23%........$552........$1,104.....

$24,001-26,000................22%........$528........$1,056.....

$26,001-28,000................21%........$504........$1,008.....

Over $28,000..................20%........$480..........$960.....