about Form 1040 Schedules

What are the different schedules used with Form 1040?

Even though Form 1040 is relatively short, there are various schedules, or additional forms, that help taxpayers calculate specific items that apply to Form 1040:

• Schedule 1: This form is used for reporting several common additional income sources or adjustments to income. Some common examples of items reported on Schedule 1 include alimony, gains or losses from the sale of a business property, unemployment compensation, educator expenses, tuition and fees deductions, and health savings account contributions.

• Schedule 2: This form is used for reporting additional taxes, and it now consists of two parts. The first part is for reporting alternative minimum tax and repayments of excess premium tax credits for health insurance purchased through the health insurance marketplace. The second part is for reporting self-employment taxes, unreported social security and Medicare tax, additional tax on IRAs or other tax-favored accounts, household employment taxes, repayment of first-time home buyer credit, and section 965 net tax liability for foreign corporations.

• Schedule 3: This form is for reporting additional credits and payments, and it's split into two parts: refundable credits and non-refundable credits. Credits reported here include credits for child and dependent care expenses, residential energy credits, overpayment of taxes in previous years, and previously paid excess social security taxes.

• Schedule A: This common form is used to enter all itemized deductions. These can include medical and dental expenses, mortgage interest, state and local taxes, charitable donations, and casualty and theft losses.

• Schedule B: This form is used to report interest and dividend income that is greater than $1,500. If you have interest and dividend income under that amount, you will enter that on Form 1040, Lines 2 and 3.

• Schedule C: This form is for reporting profit or loss from business. It's used by independent contractors, freelancers, and owners of sole proprietorships or single-member LLCs.

• Schedule D: This form is used for reporting capital gains or losses from investments.

• Schedule E: Those who have income or losses from rental real estate, royalties, partnerships, S corporations, estates, trusts, REMICs, or other pass-through entities will report those amounts on this form.

• Schedule F: This form is used by farmers to report income and expenses from farming.

• Schedule H: This form is used by taxpayers with household workers, such as a nanny or caretaker. Since the taxpayer is responsible for withholding income for social security and Medicare taxes, those are reported here.

• Schedule J: This form is used by farmers and fisherman who choose to figure their income tax by averaging their three previous years' worth of taxes in order to more evenly distribute tax liability.

• Schedule R: This form is for claiming the senior or disability tax credit.

• Schedule SE: For business owners or independent contractors who made a profit of at least $400, this form is used to calculate self-employment tax.

• 8812: This form is for claiming the additional child tax credit on your 2020 tax return. If the total child tax credit amount for all qualifying children in your household exceeds the amount of tax you owe for the year, then you will prepare this form to calculate the refundable portion of the credit. For tax year 2021, the entire child tax credit is refundable so it is expected that Form 8812 will not be necessary for your 2021 tax return.

Source: Intuit