IRS Schedule C “Profit or Loss From Business” Explained
IRS Schedule C, Profit or Loss From Business (Sole Proprietorship), is the schedule self-employed individuals attach to their Form 1040 to report business income and expenses. The net profit or loss…
IRS Schedule A "Itemized Deductions" Explained
Schedule A (Form 1040), Itemized Deductions, is where you list specific deductible expenses instead of taking the standard deduction. You should itemize only if your total itemized deductions are…
IRS 1040 Schedule 1 “Additional Income and Adjustments to Income” Explained
Schedule 1 (Form 1040), Additional Income and Adjustments to Income, reports types of income that don't have their own line on Form 1040, along with the "above-the-line" deductions that reduce your…
IRS Form 1040 Schedule R "Credit for the Elderly or the Disabled" Explained
Schedule R (Form 1040), Credit for the Elderly or the Disabled, figures a small nonrefundable credit for lower-income taxpayers who are 65 or older, or who are under 65 and retired on permanent and…
IRS Form 1040 Schedule J "Income Averaging for Farmers and Fishermen" Explained
Schedule J (Form 1040), Income Averaging for Farmers and Fishermen, lets people in farming or commercial fishing elect to have part of this year's income taxed at the rates that applied in the three…
IRS Form 1040 Schedule H "Household Employment Taxes" Explained
Schedule H (Form 1040), Household Employment Taxes, is how you report and pay Social Security, Medicare and federal unemployment taxes for a household employee, such as a nanny, housekeeper,…
IRS Form 12153 "Request for a Collection Due Process or Equivalent Hearing" Explained
IRS Form 12153, Request for a Collection Due Process or Equivalent Hearing, is how you ask the IRS Independent Office of Appeals for a hearing after the IRS files a federal tax lien or issues a final…
IRS Form 12509 “Innocent Spouse Statement of Disagreement” Explained
IRS Form 12509, Innocent Spouse Statement of Disagreement, is the form you use to appeal the IRS's preliminary decision on a request for innocent spouse relief. It isn't a general appeal form for…
Internal Revenue Code (IRC) Section 6321 "Federal Tax Liens on Real Estate" Explained
Internal Revenue Code Section 6321 creates the federal tax lien: the government's legal claim against all of your property and rights to property when you owe federal tax. That includes real estate,…