IRS Form 8832, Entity Classification Election is completed to reflect how the entity has elected to be treated for federal tax purposes. If you are not certain of your business entity classification, you may need to call the IRS Business & Specialty Tax Line at 1-800-829-4933 to verify how you should file your business tax […]
What is the difference between “Compensation of officers” and “Salaries and wages”? Compensation of Officers A corporation determines who is an officer under the laws of the state/country where it is incorporated. Generally, officers would include those who are principal executive or financial officers. If total receipts from page 1 of the return are $500,000 […]
TaxAct® currently supports the following business credits forms: Form 3468, Investment Credit Form 5884, Work Opportunity Credit Form 6478, Biofuel Producer Credit Form 6765, Credit for Increasing Research Activities Form 8586, Low-Income Housing Credit Form 8826, Disabled Access Credit Form 8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit Form 8844, Empowerment Zone Employment […]
If you’re filing taxes on behalf of a corporate entity, you may need to reconcile that entity’s accounting income (also known as “book income”) with its taxable income. The IRS uses Schedule M-1 of Form 1120 for reporting such reconciliations. Learn more about Form 1120: U.S. Corporation Income Tax Return. Learn more about Schedule M-1 […]
If you use TaxAct® 1120, you can transfer company accounting records into your corporation tax return by importing a trial balance report generated from your accounting software. It’s your responsibility (or your preparer’s responsibility) to ensure the accounting records in the CSV file match the appropriate tax line in the TaxAct program. If these don’t […]
A corporation using the cash method of accounting can amortize organizational costs incurred within the first tax year, even if it does not pay the expense in that year. The cost must be incurred before the end of the first tax year in which the corporation starts its business.
The TaxAct® program does not support Federal Form 851 Affiliations Schedule for the 1120 program so it is not possible to check Box 1 Consolidated Return (Attach Form 851) on Page 1 of Form 1120 U.S. Corporation Income Tax Return. We appreciate customers’ comments and suggestions as we use these to help determine ways to enhance […]
Use the following table guide to help you enter your information from Form 1099-DIV Dividends and Distributions to Form 1120 U.S. Corporation Income Tax Return in the TaxAct program. Note. The numbers listed correspond to the box numbers on Form 1099-DIV. 1a Total ordinary dividends Enter on the appropriate line on Form 1120, Page 2-Schedule C. 1b Qualified […]
Requirements for Filing Schedule UTP A corporation must file Schedule UTP (Form 1120) Uncertain Tax Position Statement with its income tax return if: The corporation files Form 1120, U.S. Corporation Income Tax Return; Form 1120-F, U.S. Income Tax Return of a Foreign Corporation; Form 1120-L, U.S. Life Insurance Company Income Tax Return; or Form 1120-PC, U.S. Property and Casualty Insurance Company Income […]
Why are my Schedule L, M-1, and M-2 printing blank even though amounts have been entered? If the corporation’s total receipts for the tax year AND total assets at the end of the tax year are less than $250,000, Schedules L, M-1, and M-2 are not required. But even if the balance sheet (Schedule L) […]
Per IRS Instructions for Schedule M-3 (Form 1120) Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More, on page 1: Who Must File Generally, the following apply. A domestic corporation or group of corporations required to file Form 1120, U.S. Corporation Income Tax Return, that reports on Form 1120, Schedule L, Balance […]
Per IRS Instructions for Form 1120-H, page 1: Purpose of Form A homeowners association files Form 1120-H as its income tax return to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income (defined later) from its gross income. Electing to File Form 1120-H A homeowners association […]
Enter the deductible officers’ compensation on IRS Form 1125-E Compensation of Officers. Do not include compensation deductible elsewhere on the return, such as amounts included in Cost of Goods Sold (COGS), elective contributions to a section 401(k) cash or deferred arrangements, or amounts contributed under a salary reduction, SEP agreement, or a SIMPLE IRA plan. Note […]
Per IRS Instructions for Form 1120, page 11: Reducing certain expenses for which credits are allowable. If the corporation claims certain credits, it may need to reduce the otherwise allowable deductions for expenses used to figure the credit. This applies to credits such as the following. Work opportunity credit (Form 5884). Employee retention credit (Form […]
A homeowners association, or HOA, is either a condominium management association, a residential real estate management association, or a timeshare association. An HOA may elect to file Form 1120-H U.S. Income Tax Return for Homeowners Associations as its income tax return, in order to take advantage of certain tax benefits. These benefits, in effect, allow […]
