Question

Where to put federal income tax expense/(benefit) on tax return 1120?

A) Schedule A
B) Schedule M-1
C) Schedule K
D) Schedule D

Answer 1

The federal income tax expense/(benefit) should be reported on Schedule K of the tax return 1120. It is part of the consolidated schedule that reflects the tax liability of the corporation.

Step-by-step explanation:

The federal income tax expense/(benefit) on a tax return 1120 should be reported on Schedule K. Schedule K is a consolidated schedule that includes various items of income, deductions, credits, and other information.

The corporation's income tax expense or benefit is an integral part of this schedule, as it directly affects the corporation's taxable income and, subsequently, its tax liability.

On the other hand, Schedule M-1 is used to reconcile income (loss) per books with the income per return, Schedule A is generally used for itemized deductions, which are not applicable to corporations, and Schedule D is intended for reporting capital gains and losses.