IRS Form 1098-T "Tuition Statement" Explained
IRS Form 1098-T, Tuition Statement, is issued by colleges, universities and other eligible educational institutions. It reports qualified tuition and related expenses paid, plus scholarships and…
IRS Form 1120 "U.S. Corporation Income Tax Return" Explained
IRS Form 1120, U.S. Corporation Income Tax Return, is the annual federal income tax return for C corporations. Unlike partnerships and S corporations, a C corporation pays tax at the entity level, at…
IRS Schedule B "Interest and Ordinary Dividends" Explained
Schedule B (Form 1040), Interest and Ordinary Dividends, lists the sources of your taxable interest and ordinary dividends. It also asks important questions about foreign accounts and foreign trusts.…
IRS Schedule F “Profit or Loss From Farming” Explained
Schedule F (Form 1040), Profit or Loss From Farming, is where individual farmers report income and expenses from a farming business. It's attached to your Form 1040 (or to a partnership or estate…
Internal Revenue Code (IRC) Section 121 "The Home Sale Gain Exclusion" Explained
Internal Revenue Code Section 121 lets you exclude up to $250,000 of gain from the sale of your main home, or up to $500,000 if you're married filing jointly, as long as you meet the ownership and…
IRS Form 1065 Schedule K-1 Explained
Schedule K-1 (Form 1065), Partner's Share of Income, Deductions, Credits, etc., reports your share of a partnership's or multi-member LLC's tax items. The partnership files it with its Form 1065 and…
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…