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Total per adjusted gross income concept# Total home mortgage interest' Medical and dental expense deduction' Net casualty or theft loss deduction Taxes paid deductionTaxable incomeTax at regular ratesIncome tax before credits Tax credits: Total Child care credit Minimum tax credit Foreign tax credit General business creditWorldwide total income taxForeign taxes paid!Taxable income which would yield: Income tax before credits Income tax after credits Worldwide total income tax Adjusted gross income8 Social Security benefits (nontaxable)3 minus: Investment interest expense deduction: Unreimbursed employee business expenses Equals: Expanded incomeExpanded Income Concept( Total per expanded income concept7NOTE: Detail may not add to totals because of rounding."Alternitve minimum tax (Form 6251)<Reconciliation of adjusted gross income and expanded income:M plus: Total tax preferences excluded from adjusted gross income [2] Qualified dividends * Total per adjusted gross income concept7 Non-limited miscellaneous deductions2 Foreign-earned income exclusion' Non-limited miscellaneous deductions6 Payments to self-employed retirement (Keogh) plansForeign-earned income exclusionTax-exempt interest][2] Includes tax-exempt interest and tax preference items subject to alternative minimum tax.W[All figures are estimates based on samples--money amounts are in thousands of dollars]9Total tax preferences excluded from adjusted gross income:Passive activity loss (alternative minimum tax adjustment)>Excess of exemptions and deductions over adjusted gross incomeF Foreign taxes paid on excluded foreign-earned income (Form 1116)I Net limited miscellaneous deductions per adjusted gross income concept[1] Section 179 of the Internal Revenue Code permits certain taxpayers to elect to deduct all or part of the cost of certain qualifying property in the year they place it in service, instead of taking depreciation deductions over a specified recovery period.SPartnership and S Corporation net income after Section 179 property deduction: [1]kTotal alternative minimum tax preference items (excluding tax-exempt interest from private activity bonds)$ Total per expanded income conceptNumber of returns!Returns with worldwide income tax$Returns without worldwide income tax�Table 6. 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