Individual Income Tax Return (Form 1040) Overview

Vocabulary flashcards defining core tax terms and schedules for Form 1040 from the REG-1 CPA review material.

Form 1040

Individual Income Tax Return.

Gross Income

The starting income figure on Form 1040 that includes Schedules B, C, D, E, and F before adjustments.

Above the line Deductions

Adjustments subtracted from Gross Income to calculate Adjusted Gross Income (AGI).

Adjusted Gross Income (AGI)

Gross Income minus Adjustments (above the line deductions).

Below the line Deductions

Deductions taken from AGI, consisting of either the Standard Deduction or Itemized Deductions.

Schedule A

The tax schedule used for reporting Itemized Deductions.

Taxable Income

Adjusted Gross Income (AGI) minus the Standard Deduction or Itemized Deductions, Qualified Business Income Deduction, and Additional Deductions.

Schedule SE

The tax schedule used for reporting Self-Employment Tax.

Tax Due

The net balance calculated after applying tax rates to Taxable Income, adding Alternative Minimum Tax and Self-Employment Tax, and subtracting Tax Credits and Payments.