Tax Schedules under Form 1040

If you received a taxable refund, have additional income from the sale of investments (capital gains or losses), have income from self-employment, income from the rental of real estate or received unemployment compensation, then you'll need to report those sources of income on this form. 

If you had to pay additional taxes such as the Alternative Minimum Tax, or taxes on other forms of income, such as a child's unearned income from investments, then you'll need to complete this schedule. If you owe the Alternative Minimum Tax, you'll need to use Form 6251 to calculate that special tax, which is then listed on line 45 of the Schedule 2.

This is for tax filers claiming nonrefundable tax credits, which includes the credit for retirement savings (calculated using Form 8880), credits for education costs you paid (using Form 8863), credit for foreign taxes paid (Form 1116) and the credit for residential energy equipment and home improvements (Form 5695).

We can use this schedule to list and total all other taxes that may apply to our situation, which would include the self employment tax (use Schedule SE to calculate this), uncollected Social Security or Medicare taxes (use Forms 4137 and 8919) and additional penalty taxes owed on IRA withdrawals (Form 5329.) 

This schedule is used it to claim additional refundable tax credits, such as the net premium tax credit, excess Social Security tax withheld, and the credit for federal tax on fuels. If we file an extension, we'll use this schedule to report the amount of tax paid with the request for extension to file.

You'll need to file this schedule if you use a foreign address or want to designate a third party to discuss this tax return with the IRS. Complete the Third Party Designee line if you want to allow another person to discuss this income tax return with the IRS.

A person who qualifies but did not receive all Economic Impact Payments (also known as stimulus payments) can claim the missing amount on his or her tax return under the Recovery Rebate Credit. Similar to the eligibility rules, calculation of the recovery rebate credit is generally the same as the calculation of stimulus checks, except that they're based on information from different sources. 

The child tax credit is a tax credit for parents who have dependent children. The credit is often linked to the number of dependent children the taxpayer has, as well as their income level. Children must have a Social Security number to be eligible for this credit. If the amount of the credit exceeded the tax owed, the taxpayer is entitled to a refund of the excess credit amount up to $1,400 per qualifying child.

Earned Income Tax Credit, also known as Earned Income Credit is a refundable tax credit for low-to moderate-income working individuals and families, especially those with children. The benefit amount depends on the income and number of dependents of a recipient. If you qualify, you can use the Earned Income Tax Credit (EITC) to reduce your taxes owing – and perhaps even increase your refund.

American Opportunity Tax Credits are the tax credits that can be used to pay for educational expenses incurred during the first four years of your post secondary education, where an individual is eligible to receive a maximum credit of $2,500 per student each year, and 40% or $1,000 might be refunded if you don't owe any taxes.

The Lifetime Learning Credit, provided by 26 U.S.C. § 25A, is available to taxpayers in the United States who have incurred education expenses. For this credit to be claimed by a taxpayer, the student must attend school on at least a part-time basis.The LLC is not refundable. So, you can use the credit to pay any tax you owe but you won't receive any of the credit back as a refund.