I’m working on a tax return project and need the explanation and answer to help me learn.

Tax Return Project
Deliverable: Submit Forms 1040, Sch. 1, Sch. 2, Sch. 3, Sch. A, Sch. C, Sch. D, Form 4797,
Form 4562 (in this order or 15-point deduction)
Full Instructions:
The tax return project assignment is to manually prepare the client’s federal income tax return for
this tax year.. If you need a clean version of any forms, they can be found at www.irs.gov . Use the
Form 1040 instructions to help you complete the tax return.
1. Include all necessary calculations on separate sheets at the back of the project, for the relevant
forms/schedules (each tab should be its own form/schedule, labeled accordingly)
2. Complete all necessary parts of all required forms (Forms 1040, Sch. 1, Sch. 2, Sch. 3, Sch. A,
Sch. C, Sch. D, Form 4797, Form 4562) – don’t include forms not from this list even if the client in
real life would be required to include other forms.
3. Be sure to put the tax forms in order based on the “attachment sequence number” – failure to do
so will result in a 15-point deduction (i.e., the order I listed the forms above).
4. Round numbers on each line on the tax return (e.g., 1a, 2a, etc.) to the nearest whole dollar.
When computing totals on the form (e.g., line 9, 11, etc.) sum up the rounded number on each
line on the form.
Tax Return Project
Use the following information to complete Taylor and Travis Prompt’s 2023 federal income tax return.
Ignore the requirement to attach the Form(s) W-2 to the Form 1040. If information is missing from
these facts, use reasonable assumptions to fill in gaps; otherwise, post a question to the discussion
board. All facts necessary to complete this return are contained in the following information supplied
by your client. Care should be taken to compute the tax correctly and not let your clients’
misconceptions of the tax law cloud your professional judgment! When computing the tax liability,
use the method we used in class, not any tax tables provided by the IRS.
Facts:
1. Travis (age 44) and Taylor Prompt (age 44) are married and live in Wheaton, IL. The Prompts
have three children: Patrick (age 19), Selena (age 8), and Blake (age 5). Selena and Blake
live at home and their parents provide for all of their needs. Patrick lives at Texas Tech
University due to school but receives more than half of his support from his parents. Patrick
earned $17,000 as a professional bull rider this year while also attending Texas Tech. The
Prompts provided the following information:
• Travis’s social security number is 987-65-4321
• Taylor’s social security number is 999-88-7777
• Patrick’s social security number is 123-45-6789 (earns gross income of
$17,000) • Selena’s social security number is 222-33-4444 (earns gross income
of $0)
• Blake’s social security number is 333-44-5555 (earns gross income of $0)
• The Prompts’ current mailing address is 302 W. Front St, Wheaton, IL
60187 • They use the cash method of accounting.
• They do not want to contribute to the presidential election campaign.
• They did not own, control, or manage any foreign bank accounts or cryptocurrency, nor
were they a grantor or beneficiary of a foreign trust during the tax year.
• Neither Travis nor Taylor is blind.
2. Travis plays hockey for the Boston Pops. He received a W-2 from the Boston Pops reporting
the following information:
Description
Amoun
t
Gross Pay
$152,00
0
Traditional 401(k) contribution
$15,20
0
Federal income tax withheld
$30,09
6
FICA – Social Security and
Medicare
$11,62
8
State income tax withheld
$7,600
Net Pay
$87,476
2
Tax Return Project
3. Taylor operates her singing business as a sole proprietorship and uses the cash method for
tax purposes. Taylor’s business name is Sweater and is run as a sole proprietorship (EIN
20- 1313878). Taylor’s principal business or profession is considered “Independent artist.”
Use the Schedule C instructions to find the appropriate business code. She started her solo
business on June 1, 2019. Her recording studio (business address) is at 16 Bluff Avenue,
Watch Hill, Rhode Island 02891. Sweater was required to, and did, file Forms 1099 for
payments made to contractors. This is NOT considered an SSTB.
Taylor reported the following information for the business activities of Sweater:
Revenues:
Cash receipts 285,000
Total revenue 285,000
Expenses:
Advertising (publicity) 9,300
General business insurance 2,500
Studio rent 8,500
Business meals (with clients) 2,400
Wages for producer/publicist 65,000
Taxes and licenses 250
Travel expenses (hotel, transportation) 7,800
Legal and professional fees 5,475
Total Expenses 101,225
Don’t forget to calculate the amount of self-employment taxes related to Taylor’s self
employment income and report on the relevant lines of the Form 1040. You do not need
to complete Form SE, but it may help to look at the Form SE to double-check your
calculation.
Don’t forget to calculate the amount of Qualified Business Income Deduction Taylor is allowed
to take and report on page 1 of the 1040. No need to complete Form 8995. The Prompts do
not have enough taxable income to worry about either excluded services or the wage
limitations.
4. Sweater purchased and placed in service the following fixed assets during the year:
Description
Lif
e
Cost
Basis
Purchase
Date
Sale
Date
5
13,955
6/1/2023
N/A
?
Furniture & Fixtures
7
$4,785
7/18/2023
N/A
?
Laptop computer
7
$7,500
11/6/2023
N/A
?
Computer Recording
Equipment
Conventio
n
Sweater does not elect out of bonus depreciation and wants to take Section 179 expensing
in a way that maximizes the current year depreciation (including 179 expense).
Tax Return Project
Also, on November 10, 2023 Taylor sold her old laptop (different from the one she put in
service in the table above) for $950 on December 21, 2023. It was originally purchased for
$3,550 on June 1, 2018 (it was the only asset she purchased in 2021; she fully expensed the
cost of the old laptop through immediate 100% bonus depreciation). These assets are used
entirely in Taylor’s business (there is no personal use). Assume none of the property is “listed”
property. Taylor capitalizes these assets for financial accounting purposes. Sweater does not
have an audited financial statement.
5. Travis and Taylor paid $15,765 for health insurance for the family. This amount is not
included in the amounts for Sweater. Neither Travis nor Taylor had access to employerprovided health insurance.
6. Taylor received the below payments related to interest and dividends for the
year. o $125 interest from a CD held at Bank of Chicago
o $4,000 of qualified dividends from Nvidia
o $1,750 of qualified dividends from Amazon
o $1,500 of qualified dividends from Walmart
7. Taylor received a Form 1099-B from his broker for the sale of the following securities during
2023. The basis amounts were reported to the IRS:
Security Sale Date Purchase Date
Proceeds Reported on 1099-B
Basis
Apple Inc (25 sh) 3/15/2023 10/22/2018 $1,285 $1,800
Cassill Corp (500 sh)10/20/2023 02/19/2022 $5,760 $6,700
Microsoft Inc (50 sh) 11/15/2023 1/22/2023 $8,280 $1,900
8. The Prompts also had the following expenses relating to their home were as follows:
Mortgage Interest ($350,000 loan balance, reported on a Form 1098)
$8,985 Property taxes $12,500
Utilities $4,589
Homeowners Insurance $1,635
9. The Prompts paid the following expenses during the year in addition to the items listed above:
Dentist (unreimbursed by insurance) $400 Cosmetic eyebrow
enhancement surgery (unreimbursed) $5,345 Gym memberships $2,000
Nutritional supplements and juices $7,200 Cash contributions to qualified
charities (U of Cincinnati) $7,500 Vehicle property tax based upon value
$450
4
Tax Return Project
Tuition paid for Patrick – reported on a 1098-T
(full-time undergrad student, majoring in agriculture) $11,500
10. On January 12, 2023, Travis won tickets to the Super Bowl from a radio station. He won 4
tickets, worth $500 each.
11. Travis and Taylor were busy working, so they paid $4,500 (in total) for childcare for Selena
and Blake at a summer camp at Daycare One (1700 Ford Rd., Naperville, IL 60188, EIN:
555-55-5555).
12. The Prompts made federal estimated tax payments related to the 2023 tax year as follows:
April 15, 2023, $7,500
June 15, 2023, $7,500
September 15, 2023, $7,500
January 15, 2024, $7,500
13. In addition to the state tax withholding from Travis’s paychecks, the Prompts paid $3,000
in estimated state income tax payments related to the 2023 tax year in 2023.
14. Other Information
The Prompts would like to receive a refund (if any) of tax they may have overpaid for the year.
Their preferred method of receiving the refund is by check.
If they have an underpayment, you do not need to compute any penalty.
Even if a taxpayer is phased out (AGI/TI too high) of a credit or deduction or the tax does not apply
(AGI/TI not high enough), please show that calculation/comparison so I know you considered the
implications. Items to calculate on separate pieces of paper/excel:
• Depreciation/immediate expensing and asset disposition for Sweater
• Tax (income tax (ordinary and preferential), self-employment tax, net investment income
tax, additional Medicare tax)
• Credits (child tax credit, dependent care credit, AOTC or LLC)
5
Form
1040 U.S. Individual Income Tax Return 2023
Department of the Treasury—Internal Revenue Service
For the year Jan. 1–Dec. 31, 2023, or other tax year beginning
OMB No. 1545-0074
IRS Use Only—Do not write or staple in this space.
, 2023, ending
, 20
See separate instructions.
Your first name and middle initial
Last name
Your social security number
If joint return, spouse’s first name and middle initial
Last name
Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
City, town, or post office. If you have a foreign address, also complete spaces below.
Foreign country name
Presidential Election Campaign
Check here if you, or your
spouse if filing jointly, want $3
ZIP code
to go to this fund. Checking a
box below will not change
Foreign postal code your tax or refund.
State
Foreign province/state/county
You
Filing Status
Single
Married filing jointly (even if only one had income)
Check only
one box.
Digital
Assets
Standard
Deduction
Married filing separately (MFS)
Qualifying surviving spouse (QSS)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the
qualifying person is a child but not your dependent:
At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Were born before January 2, 1959
(1) First name
Spouse:
Are blind
Dependents (see instructions):
Income
(2) Social security
number
Last name
Was born before January 2, 1959
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Child tax credit
Credit for other dependents
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1b
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Medicaid waiver payments not reported on Form(s) W-2 (see instructions) .
Taxable dependent care benefits from Form 2441, line 26
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Employer-provided adoption benefits from Form 8839, line 29
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1d
1e
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If you did not
get a Form
W-2, see
instructions.
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Wages from Form 8919, line 6 . . . . . . .
Other earned income (see instructions) . . . .
Nontaxable combat pay election (see instructions) .
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1i
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1g
1h
Add lines 1a through 1h
Tax-exempt interest . .
Qualified dividends . .
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Attach Sch. B
if required.
z
2a
3a
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b Taxable interest
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b Ordinary dividends .
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1z
2b
3b
4a
5a
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IRA distributions . . .
Pensions and annuities .
Social security benefits .
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b Taxable amount .
b Taxable amount .
b Taxable amount .
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4b
5b
6b
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8
If you elect to use the lump-sum election method, check here (see instructions)
Capital gain or (loss). Attach Schedule D if required. If not required, check here
Additional income from Schedule 1, line 10 . . . . . . . . . . .
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8
9
10
11
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income .
Adjustments to income from Schedule 1, line 26
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Subtract line 10 from line 9. This is your adjusted gross income
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14
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Standard deduction or itemized deductions (from Schedule A)
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Qualified business income deduction from Form 8995 or Form 8995-A . . . .
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . .
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
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12
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14
• Single or
Married filing
separately,
$13,850
• Married filing
jointly or
Qualifying
surviving spouse,
$27,700
• Head of
household,
$20,800
• If you checked
any box under
Standard
Deduction,
see instructions.
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2a
3a
4a
5a
6a
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For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Is blind
(3) Relationship
to you
Total amount from Form(s) W-2, box 1 (see instructions) .
Household employee wages not reported on Form(s) W-2 .
Tip income not reported on line 1a (see instructions) . .
Standard
Deduction for—
No
(4) Check the box if qualifies for (see instructions):
1a
b
c
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Yes
Someone can claim:
You as a dependent
Your spouse as a dependent
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You:
If more
than four
dependents,
see instructions
and check
here . .
Spouse
Head of household (HOH)
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Cat. No. 11320B
15
Form 1040 (2023)
Page 2
Form 1040 (2023)
Tax and
Credits
Payments
16
17
Tax (see instructions). Check if any from Form(s): 1
8814
Amount from Schedule 2, line 3
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19
20
Add lines 16 and 17 . . . . . . . . . . . . . . .
Child tax credit or credit for other dependents from Schedule 8812 .
Amount from Schedule 3, line 8
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24
Add lines 19 and 20 . . . . . . . . . . . . . . .
Subtract line 21 from line 18. If zero or less, enter -0- . . . . .
Other taxes, including self-employment tax, from Schedule 2, line 21
Add lines 22 and 23. This is your total tax . . . . . . . .
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25
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Federal income tax withheld from:
Form(s) W-2 . . . . . . .
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25a
Form(s) 1099 . . . . . .
Other forms (see instructions) .
Add lines 25a through 25c . .
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25b
25c
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27
28
2023 estimated tax payments and amount applied from 2022 return .
Earned income credit (EIC) . . . . . . . . . . . . .
Additional child tax credit from Schedule 8812
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25d
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29
30
31
American opportunity credit from Form 8863, line 8 .
Reserved for future use . . . . . . . . .
Amount from Schedule 3, line 15 . . . . . .
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32
33
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits
Add lines 25d, 26, and 32. These are your total payments
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34
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
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32
33
34
b
c
d
If you have a
qualifying child,
attach Sch. EIC.
Refund
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4972 3
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27
28
29
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31
35a
Direct deposit?
b
See instructions.
d
36
Amount of line 34 you want refunded to you. If Form 8888 is attached, check here .
Routing number
c Type:
Checking
Account number
Amount of line 34 you want applied to your 2024 estimated tax . . .
36
Amount
You Owe
37
Subtract line 33 from line 24. This is the amount you owe.
For details on how to pay, go to www.irs.gov/Payments or see instructions .
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38
Estimated tax penalty (see instructions)
38
Third Party
Designee
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Joint return?
See instructions.
Keep a copy for
your records.
Paid
Preparer
Use Only
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Do you want to allow another person to discuss this return with the IRS? See
instructions
. . . . . . . . . . . . . . . . . . . . .
Designee’s
name
Sign
Here
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24
Phone
no.
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Savings
35a
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37
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Yes. Complete below.
No
Personal identification
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and
belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
Your occupation
If the IRS sent you an Identity
Protection PIN, enter it here
(see inst.)
Spouse’s signature. If a joint return, both must sign.
Date
Spouse’s occupation
If the IRS sent your spouse an
Identity Protection PIN, enter it here
(see inst.)
Phone no.
Email address
Preparer’s name
Preparer’s signature
Date
PTIN
Check if:
Self-employed
Firm’s name
Phone no.
Firm’s address
Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information.
Form 1040 (2023)
Form
1040 U.S. Individual Income Tax Return 2023
Department of the Treasury—Internal Revenue Service
For the year Jan. 1–Dec. 31, 2023, or other tax year beginning
OMB No. 1545-0074
IRS Use Only—Do not write or staple in this space.
, 2023, ending
, 20
See separate instructions.
Your first name and middle initial
Last name
Your social security number
If joint return, spouse’s first name and middle initial
Last name
Spouse’s social security number
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
City, town, or post office. If you have a foreign address, also complete spaces below.
Foreign country name
Presidential Election Campaign
Check here if you, or your
spouse if filing jointly, want $3
ZIP code
to go to this fund. Checking a
box below will not change
Foreign postal code your tax or refund.
State
Foreign province/state/county
You
Filing Status
Single
Married filing jointly (even if only one had income)
Check only
one box.
Digital
Assets
Standard
Deduction
Married filing separately (MFS)
Qualifying surviving spouse (QSS)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child’s name if the
qualifying person is a child but not your dependent:
At any time during 2023, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Were born before January 2, 1959
(1) First name
Spouse:
Are blind
Dependents (see instructions):
Income
(2) Social security
number
Last name
Was born before January 2, 1959
.
.
.
Child tax credit
Credit for other dependents
.
.
.
.
.
.
.
.
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.
.
.
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.
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.
.
.
.
.
1a
1b
1c
d
e
f
Medicaid waiver payments not reported on Form(s) W-2 (see instructions) .
Taxable dependent care benefits from Form 2441, line 26
. . . . .
Employer-provided adoption benefits from Form 8839, line 29
. . . .
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1d
1e
1f
If you did not
get a Form
W-2, see
instructions.
g
h
i
Wages from Form 8919, line 6 . . . . . . .
Other earned income (see instructions) . . . .
Nontaxable combat pay election (see instructions) .
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1i
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1g
1h
Add lines 1a through 1h
Tax-exempt interest . .
Qualified dividends . .
.
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Attach Sch. B
if required.
z
2a
3a
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b Taxable interest
.
b Ordinary dividends .
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1z
2b
3b
4a
5a
6a
IRA distributions . . .
Pensions and annuities .
Social security benefits .
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b Taxable amount .
b Taxable amount .
b Taxable amount .
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4b
5b
6b
c
7
8
If you elect to use the lump-sum election method, check here (see instructions)
Capital gain or (loss). Attach Schedule D if required. If not required, check here
Additional income from Schedule 1, line 10 . . . . . . . . . . .
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7
8
9
10
11
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income .
Adjustments to income from Schedule 1, line 26
. . . . . .
Subtract line 10 from line 9. This is your adjusted gross income
.
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9
10
11
12
13
14
15
Standard deduction or itemized deductions (from Schedule A)
. . . . .
Qualified business income deduction from Form 8995 or Form 8995-A . . . .
Add lines 12 and 13 . . . . . . . . . . . . . . . . . . .
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
.
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.
12
13
14
• Single or
Married filing
separately,
$13,850
• Married filing
jointly or
Qualifying
surviving spouse,
$27,700
• Head of
household,
$20,800
• If you checked
any box under
Standard
Deduction,
see instructions.
.
. .
2a
3a
4a
5a
6a
.
.
.
.
.
.
.
.
.
.
.
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Is blind
(3) Relationship
to you
Total amount from Form(s) W-2, box 1 (see instructions) .
Household employee wages not reported on Form(s) W-2 .
Tip income not reported on line 1a (see instructions) . .
Standard
Deduction for—
No
(4) Check the box if qualifies for (see instructions):
1a
b
c
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Yes
Someone can claim:
You as a dependent
Your spouse as a dependent
Spouse itemizes on a separate return or you were a dual-status alien
Age/Blindness You:
If more
than four
dependents,
see instructions
and check
here . .
Spouse
Head of household (HOH)
.
.
.
.
.
.
.
.
.
.
.
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.
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.
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.
.
.
Cat. No. 11320B
15
Form 1040 (2023)
Page 2
Form 1040 (2023)
Tax and
Credits
Payments
16
17
Tax (see instructions). Check if any from Form(s): 1
8814
Amount from Schedule 2, line 3
. . . . . . . .
.
.
.
.
.
16
17
.
.
.
18
19
20
Add lines 16 and 17 . . . . . . . . . . . . . . .
Child tax credit or credit for other dependents from Schedule 8812 .
Amount from Schedule 3, line 8
. . . . . . . . . . .
.
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18
19
20
21
22
23
24
Add lines 19 and 20 . . . . . . . . . . . . . . .
Subtract line 21 from line 18. If zero or less, enter -0- . . . . .
Other taxes, including self-employment tax, from Schedule 2, line 21
Add lines 22 and 23. This is your total tax . . . . . . . .
.
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21
22
23
25
a
Federal income tax withheld from:
Form(s) W-2 . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
25a
Form(s) 1099 . . . . . .
Other forms (see instructions) .
Add lines 25a through 25c . .
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25b
25c
. . .
26
27
28
2023 estimated tax payments and amount applied from 2022 return .
Earned income credit (EIC) . . . . . . . . . . . . .
Additional child tax credit from Schedule 8812
. . . . . . .
.
.
.
.
.
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.
.
.
25d
.
.
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.
.
26
29
30
31
American opportunity credit from Form 8863, line 8 .
Reserved for future use . . . . . . . . .
Amount from Schedule 3, line 15 . . . . . .
.
.
.
32
33
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits
Add lines 25d, 26, and 32. These are your total payments
. . . . . . . . . .
.
.
.
.
34
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
.
.
32
33
34
b
c
d
If you have a
qualifying child,
attach Sch. EIC.
Refund
.
.
.
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2
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.
4972 3
. . . .
.
.
.
. .
27
28
29
30
31
35a
Direct deposit?
b
See instructions.
d
36
Amount of line 34 you want refunded to you. If Form 8888 is attached, check here .
Routing number
c Type:
Checking
Account number
Amount of line 34 you want applied to your 2024 estimated tax . . .
36
Amount
You Owe
37
Subtract line 33 from line 24. This is the amount you owe.
For details on how to pay, go to www.irs.gov/Payments or see instructions .
.
38
Estimated tax penalty (see instructions)
38
Third Party
Designee
.
.
.
Joint return?
See instructions.
Keep a copy for
your records.
Paid
Preparer
Use Only
.
.
.
.
.
.
Do you want to allow another person to discuss this return with the IRS? See
instructions
. . . . . . . . . . . . . . . . . . . . .
Designee’s
name
Sign
Here
.
24
Phone
no.
.
.
.
.
.
Savings
35a
.
.
.
37
.
Yes. Complete below.
No
Personal identification
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and
belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
Your occupation
If the IRS sent you an Identity
Protection PIN, enter it here
(see inst.)
Spouse’s signature. If a joint return, both must sign.
Date
Spouse’s occupation
If the IRS sent your spouse an
Identity Protection PIN, enter it here
(see inst.)
Phone no.
Email address
Preparer’s name
Preparer’s signature
Date
PTIN
Check if:
Self-employed
Firm’s name
Phone no.
Firm’s address
Firm’s EIN
Go to www.irs.gov/Form1040 for instructions and the latest information.
Form 1040 (2023)
SCHEDULE 1
(Form 1040)
Department of the Treasury
Internal Revenue Service
2023
Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
Attachment
Sequence No. 01
Your social security number
Name(s) shown on Form 1040, 1040-SR, or 1040-NR
Part I
OMB No. 1545-0074
Additional Income and Adjustments to Income
Additional Income
1
2a
b
3
4
5
6
7
8
a
b
c
d
e
f
g
h
i
j
k
l
Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . .
1
Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . .
2a
Date of original divorce or separation agreement (see instructions):
Business income or (loss). Attach Schedule C . . . . . . . . . . . . . . . . .
3
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . . . . .
4
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E .
5
Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . . . . . .
6
Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . .
7
Other income:
)
Net operating loss . . . . . . . . . . . . . . . . . . .
8a (
Gambling . . . . . . . . . . . . . . . . . . . . . .
8b
Cancellation of debt . . . . . . . . . . . . . . . . . .
8c
)
Foreign earned income exclusion from Form 2555 . . . . . . .
8d (
Income from Form 8853 . . . . . . . . . . . . . . . . .
8e
Income from Form 8889 . . . . . . . . . . . . . . . . .
8f
Alaska Permanent Fund dividends . . . . . . . . . . . . .
8g
Jury duty pay . . . . . . . . . . . . . . . . . . . . .
8h
Prizes and awards . . . . . . . . . . . . . . . . . . .
8i
Activity not engaged in for profit income . . . . . . . . . . .
8j
Stock options . . . . . . . . . . . . . . . . . . . . .
8k
Income from the rental of personal property if you engaged in the rental
for profit but were not in the business of renting such property . . .
8l
m Olympic and Paralympic medals and USOC prize money (see
instructions) . . . . . . . . . . . . . . . . . . . . .
8m
n Section 951(a) inclusion (see instructions) . . . . . . . . . .
8n
o Section 951A(a) inclusion (see instructions) . . . . . . . . . .
8o
p Section 461(l) excess business loss adjustment . . . . . . . .
8p
q Taxable distributions from an ABLE account (see instructions) . . .
8q
r Scholarship and fellowship grants not reported on Form W-2 . . .
8r
s Nontaxable amount of Medicaid waiver payments included on Form
)
1040, line 1a or 1d . . . . . . . . . . . . . . . . . . .
8s (
t Pension or annuity from a nonqualifed deferred compensation plan or
a nongovernmental section 457 plan . . . . . . . . . . . .
8t
u Wages earned while incarcerated . . . . . . . . . . . . .
8u
z Other income. List type and amount:
8z
9 Total other income. Add lines 8a through 8z . . . . . . . . . . . . . . . . . .
9
10 Combine lines 1 through 7 and 9. This is your additional income. Enter here and on Form
1040, 1040-SR, or 1040-NR, line 8 . . . . . . . . . . . . . . . . . . . . .
10
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 71479F
Schedule 1 (Form 1040) 2023
Page 2
Schedule 1 (Form 1040) 2023
Part II Adjustments to Income
11
12
13
14
15
16
17
18
19a
b
c
20
21
22
23
24
a
b
c
d
e
f
g
h
i
j
k
z
25
26
Educator expenses . . . . . . . . . . . . . . . . . . . . . . . . . . .
11
Certain business expenses of reservists, performing artists, and fee-basis government
officials. Attach Form 2106 . . . . . . . . . . . . . . . . . . . . . . . .
12
Health savings account deduction. Attach Form 8889 . . . . . . . . . . . . . .
13
Moving expenses for members of the Armed Forces. Attach Form 3903 . . . . . . .
14
Deductible part of self-employment tax. Attach Schedule SE . . . . . . . . . . .
15
Self-employed SEP, SIMPLE, and qualified plans . . . . . . . . . . . . . . . .
16
Self-employed health insurance deduction . . . . . . . . . . . . . . . . . .
17
Penalty on early withdrawal of savings . . . . . . . . . . . . . . . . . . . .
18
Alimony paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19a
Recipient’s SSN . . . . . . . . . . . . . . . . . . . . . .
Date of original divorce or separation agreement (see instructions):
IRA deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Student loan interest deduction . . . . . . . . . . . . . . . . . . . . . .
21
22
Reserved for future use . . . . . . . . . . . . . . . . . . . . . . . . .
Archer MSA deduction . . . . . . . . . . . . . . . . . . . . . . . . .
23
Other adjustments:
Jury duty pay (see instructions) . . . . . . . . . . . . . .
24a
Deductible expenses related to income reported on line 8l from the
rental of personal property engaged in for profit . . . . . . . .
24b
Nontaxable amount of the value of Olympic and Paralympic medals
and USOC prize money reported on line 8m . . . . . . . . . .
24c
Reforestation amortization and expenses . . . . . . . . . . .
24d
Repayment of supplemental unemployment benefits under the Trade
Act of 1974 . . . . . . . . . . . . . . . . . . . . . .
24e
Contributions to section 501(c)(18)(D) pension plans . . . . . . .
24f
Contributions by certain chaplains to section 403(b) plans . . . .
24g
Attorney fees and court costs for actions involving certain unlawful
discrimination claims (see instructions) . . . . . . . . . . . .
24h
Attorney fees and court costs you paid in connection with an award
from the IRS for information you provided that helped the IRS detect
tax law violations . . . . . . . . . . . . . . . . . . .
24i
Housing deduction from Form 2555 . . . . . . . . . . . . .
24j
Excess deductions of section 67(e) expenses from Schedule K-1 (Form
1041) . . . . . . . . . . . . . . . . . . . . . . . .
24k
Other adjustments. List type and amount:
24z
Total other adjustments. Add lines 24a through 24z . . . . . . . . . . . . . . .
25
Add lines 11 through 23 and 25. These are your adjustments to income. Enter here and on
Form 1040, 1040-SR, or 1040-NR, line 10 . . . . . . . . . . . . . . . . . .
26
Schedule 1 (Form 1040) 2023
SCHEDULE 2
(Form 1040)
Department of the Treasury
Internal Revenue Service
OMB No. 1545-0074
Additional Taxes
Attachment
Sequence No. 02
Your social security number
Name(s) shown on Form 1040, 1040-SR, or 1040-NR
Part I
2023
Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
Tax
1
Alternative minimum tax. Attach Form 6251 . . . . . . . . . . . . . . . .
1
2
Excess advance premium tax credit repayment. Attach Form 8962 . . . . . . .
2
3
Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 . .
3
Part II Other Taxes
4
Self-employment tax. Attach Schedule SE . . . . . . . . . . . . . . . . .
5
Social security and Medicare tax on unreported tip income.
Attach Form 4137 . . . . . . . . . . . . . . . . . .
5
Uncollected social security and Medicare tax on wages. Attach
Form 8919 . . . . . . . . . . . . . . . . . . . . .
6
6
7
Total additional social security and Medicare tax. Add lines 5 and 6
8
Additional tax on IRAs or other tax-favored accounts. Attach Form 5329 if required.
. . . . . .
4
7
If not required, check here . . . . . . . . . . . . . . . . . . . . .
8
9
Household employment taxes. Attach Schedule H
. . . . . . . . . . . . .
9
10
Repayment of first-time homebuyer credit. Attach Form 5405 if required . . . . .
10
11
Additional Medicare Tax. Attach Form 8959 . . . . . . . . . . . . . . . .
11
12
Net investment income tax. Attach Form 8960 . . . . . . . . . . . . . . .
12
13
Uncollected social security and Medicare or RRTA tax on tips or group-term life
insurance from Form W-2, box 12 . . . . . . . . . . . . . . . . . . . .
13
Interest on tax due on installment income from the sale of certain residential lots
and timeshares . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
Interest on the deferred tax on gain from certain installment sales with a sales price
over $150,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15
Recapture of low-income housing credit. Attach Form 8611 . . . . . . . . . .
16
14
15
16
(continued on page 2)
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 71478U
Schedule 2 (Form 1040) 2023
Page 2
Schedule 2 (Form 1040) 2023
Part II Other Taxes (continued)
17
Other additional taxes:
a Recapture of other credits. List type, form number, and amount:
17a
b Recapture of federal mortgage subsidy, if you sold your home
see instructions . . . . . . . . . . . . . . . . . . . 17b
c Additional tax on HSA distributions. Attach Form 8889 . . . .
17c
d Additional tax on an HSA because you didn’t remain an eligible
individual. Attach Form 8889 . . . . . . . . . . . . . . 17d
e Additional tax on Archer MSA distributions. Attach Form 8853 .
17e
f Additional tax on Medicare Advantage MSA distributions. Attach
17f
Form 8853 . . . . . . . . . . . . . . . . . . . . .
g Recapture of a charitable contribution deduction related to a
fractional interest in tangible personal property . . . . . . . 17g
h Income you received from a nonqualified deferred compensation
plan that fails to meet the requirements of section 409A . . . 17h
i Compensation you received from a nonqualified deferred
compensation plan described in section 457A . . . . . . .
17i
j
Section 72(m)(5) excess benefits tax . . . . . . . . . . .
k Golden parachute payments
l
17j
. . . . . . . . . . . . . .
17k
Tax on accumulation distribution of trusts . . . . . . . . .
17l
m Excise tax on insider stock compensation from an expatriated
corporation . . . . . . . . . . . . . . . . . . . . . 17m
n Look-back interest under section 167(g) or 460(b) from Form
8697 or 8866 . . . . . . . . . . . . . . . . . . . . 17n
o Tax on non-effectively connected income for any part of the
year you were a nonresident alien from Form 1040-NR . . . . 17o
p Any interest from Form 8621, line 16f, relating to distributions
from, and dispositions of, stock of a section 1291 fund . . . . 17p
q Any interest from Form 8621, line 24 . . . . . . . . . . .
17q
z Any other taxes. List type and amount:
17z
18
Total additional taxes. Add lines 17a through 17z . . . . . . . . . . . . . .
18
19
Reserved for future use
19
20
21
Section 965 net tax liability installment from Form 965-A . . .
20
Add lines 4, 7 through 16, and 18. These are your total other taxes. Enter here and
on Form 1040 or 1040-SR, line 23, or Form 1040-NR, line 23b . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . .
21
Schedule 2 (Form 1040) 2023
SCHEDULE 3
Department of the Treasury
Internal Revenue Service
2023
Attach to Form 1040, 1040-SR, or 1040-NR.
Go to www.irs.gov/Form1040 for instructions and the latest information.
Attachment
Sequence No. 03
Your social security number
Name(s) shown on Form 1040, 1040-SR, or 1040-NR
Part I
OMB No. 1545-0074
Additional Credits and Payments
(Form 1040)
Nonrefundable Credits
1
Foreign tax credit. Attach Form 1116 if required
. . . . . . . . . . . . . .
1
2
Credit for child and dependent care expenses from Form 2441, line 11. Attach
Form 2441 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
3
Education credits from Form 8863, line 19 . . . . . . . . . . . . . . . . .
3
4
Retirement savings contributions credit. Attach Form 8880 . . . . . . . . . .
4
5a Residential clean energy credit from Form 5695, line 15
. . . . . . . . . . .
b Energy efficient home improvement credit from Form 5695, line 32
6
5a
. . . . . .
5b
Total other nonrefundable credits. Add lines 6a through 6z . . . . . . . . . .
Add lines 1 through 4, 5a, 5b, and 7. Enter here and on Form 1040, 1040-SR, or
1040-NR, line 20 . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
Other nonrefundable credits:
a General business credit. Attach Form 3800
. . . . . . . .
b Credit for prior year minimum tax. Attach Form 8801
6a
. . . .
6b
c Adoption credit. Attach Form 8839 . . . . . . . . . . . .
6c
d Credit for the elderly or disabled. Attach Schedule R . . . . .
6d
e Reserved for future use
. . . . . . . . . . . . . . . .
6e
f Clean vehicle credit. Attach Form 8936 . . . . . . . . . .
6f
g Mortgage interest credit. Attach Form 8396 . . . . . . . .
6g
h District of Columbia first-time homebuyer credit. Attach Form 8859
6h
i
Qualified electric vehicle credit. Attach Form 8834
. . . . .
6i
j
Alternative fuel vehicle refueling property credit. Attach Form 8911
6j
k Credit to holders of tax credit bonds. Attach Form 8912 . . .
6k
l
. . . . . .
6l
m Credit for previously owned clean vehicles. Attach Form 8936 .
6m
Amount on Form 8978, line 14. See instructions
z Other nonrefundable credits. List type and amount:
6z
7
8
8
(continued on page 2)
For Paperwork Reduction Act Notice, see your tax return instructions.
Cat. No. 71480G
Schedule 3 (Form 1040) 2023
Page 2
Schedule 3 (Form 1040) 2023
Part II Other Payments and Refundable Credits
9
Net premium tax credit. Attach Form 8962 . . . . . . . . . . . . . . . . .
9
10
Amount paid with request for extension to file (see instructions) . . . . . . . .
10
11
Excess social security and tier 1 RRTA tax withheld . . . . . . . . . . . . .
11
12
Credit for federal tax on fuels. Attach Form 4136 . . . . . . . . . . . . . .
12
13
Other payments or refundable credits:
a Form 2439 . . . . . . . . . . . . . . . . . . . . . 13a
b Credit for repayment of amounts included in income from earlier
years . . . . . . . . . . . . . . . . . . . . . . . . 13b
c Elective payment election amount from Form 3800, Part III, line
6, column (i) . . . . . . . . . . . . . . . . . . . . . 13c
d Deferred amount of net 965 tax liability (see instructions) . . .
13d
z Other payments or refundable credits. List type and amount:
13z
14
15
Total other payments or refundable credits. Add lines 13a through 13z . . . . .
Add lines 9 through 12 and 14. Enter here and on Form 1040, 1040-SR, or 1040-NR,
line 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
15
Schedule 3 (Form 1040) 2023