When you hear the term “1040,” you probably think about the Form 1040, one of the primary forms used by most taxpayers to report income to the IRS. But in addition to the good old Form 1040, there are also Form 1040 Schedules that allow taxpayers to claim certain credits and deductions on their income and supply additional information to the IRS to qualify for these tax credits and deductions.
To claim particular credits and deductions, here are schedules (worksheets) you may need to submit to the IRS with your taxes:
- 1040 Schedule 8812 — Child Tax Credit. This is used to claim an additional tax credit for taxpayers with children.
- 1040 Schedule A — Itemized Deductions. If you choose not to take the standard deduction, use 1040 Schedule A to report your itemized deductions, including ones that many taxpayers overlook.
- 1040 Schedule B — Interest and Ordinary Dividends. Use this form to report interest and dividends earned during the tax year.
- 1040 Schedule C — Profit and Loss from a Sole Proprietorship. Small business owners who have classified their business as a sole proprietorship use this form to report profit and loss for their business.
- 1040 Schedule C-EZ — Net Profit from Business. This is used for reporting a net profit for a sole proprietorship. Although subject to additional qualifications, sole proprietorships that will report a profit may be able to use this streamlined form instead of the regular Schedule C form.
- 1040 Schedule D — Capital Gains and Losses. Reports long- and short-term gains and losses from investments during the tax year.
- 1040 Schedule E — Supplemental Income and Loss. Used to report income or losses from royalties, partnerships, S corporations, trusts, estates, rental properties, etc.
- 1040 Schedule EIC — Earned Income Credit. Low to moderate income taxpayers use this schedule to show they qualify for a credit to lower their tax burden. This credit is based on income and the number of children the taxpayer has during the tax year.
- 1040 Schedule F — Profit or Loss from Farming. This schedule reports income or losses from farming activities.
- 1040 Schedule H — Household Employment Taxes. This is used to report taxes paid for household staff such as gardeners, housekeepers or caretakers.
- 1040 Schedule J — Income Averaging for Farmers and Fishermen. This form allows the taxpayer to average the last three years of profit or loss for farming or fishing activities, which may lead to a lower tax burden.
- 1040 Schedule R — Credit for the Elderly or Disabled. This is used to claim a tax credit if the taxpayer cared for an elderly or disabled person during the tax year.
- 1040 Schedule SE — Self-employment Tax. This form calculates tax owed for income earned while self-employed as an independent contractor or freelancer.
If you’re going to take advantage of the many deductions and tax exemptions allowed by the IRS, be sure to file the appropriate Form 1040 Schedules. And if you have any further questions about these potentially confusing schedules and worksheets, don’t hesitate to contact a professional tax preparer for help.
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