Fillable Form 1120: US Corporation Income Tax Return

What is Form 1120?

Form 1120, US Corporation Income Tax Return, is an Internal Revenue Service (IRS) form used to report the income, gains, losses, deductions, credits, and other relevant financial information of a domestic corporation.

A domestic corporation is a company that conducts its affairs in its home country. Such businesses are often taxed differently than non-domestic businesses and may be required to pay duties or fees on the products they import. Typically, a domestic corporation can easily conduct business in other states or parts of the country where it has filed its articles of incorporation.

The IRS uses the ownership percentage detailed in the 1120-S IRS form to allocate how much profit and loss should be assigned to an individual shareholder.

Who needs to use Form 1120?

A domestic corporation must file Form 1120 IRS whether or not they have taxable income unless they are required or elect to file a special return instead.

How to fill out Form 1120?

Form 1120 is a long, but simple form to fill out. Make sure to download it in PDF format so that its format and structure stay the same even after being opened in another application and printed. It will be beneficial to have the relevant documents prepared to make sure that all information entered is correct and updated.

Calendar or Tax Year

Enter the beginning and end of the calendar or tax year that this form is being filed for.

Name

Enter the name of the corporation.

Number, Street, and Room or Suite Number

Enter the number, street, and room or suite number of the corporation. If the corporation has a P.O. box and the post office does not deliver mail to the street address of the corporation, enter the P.O. box number instead.

City or Town, State or Province, Country, and ZIP or Foreign Postal Code

Enter the corporation’s city or town, state or province, country, and ZIP or foreign postal code.

Line A

Check the appropriate boxes that apply. You may check any of the following:

• 1a: Consolidated Return (attach Form 851 to this form).
• 1b: Life/nonlife Consolidated Return.
• 2: Personal Holding Corporation (Attach Schedule PH to this form).
• 3: Personal Service Corporation
• 4: Schedule M-3 is attached to this form.

Line B

Enter your Employer Identification Number (EIN).

Line C

Enter the date that the corporation was registered.

Line D

Enter the total assets of the corporation.

Line E

Check only one of the following that best applies to the purpose of this form:

• Initial Return
• Final Return
• Name Change
• Address Change

Income

Line 1a

Enter the gross receipts and sales.

Line 1b

Enter the returns and allowances.

Line 1c

Subtract Line 1b from Line 1a and enter the difference.

Line 2

Enter the cost of the goods sold. Attach Form 1125-A to this form.

Line 3

Subtract Line 2 from Line 1c and enter the difference.

Line 4

Enter the amount of dividends and inclusions as indicated on Schedule C, Line 23.

Line 5

Enter the total amount of interest.

Line 6

Enter the total amount of gross rents.

Line 7

Enter the total amount of gross royalties.

Line 8

Enter the total amount of capital gain net income, and attach Schedule D, Form 1120 to this form.

Line 9

Enter the net gain or loss as indicated on Form 4797, Part II, Line 17. Attach Form 4797 to this form.

Line 10

Enter the total of any other income earned and attach the relevant statements.

Line 11

Add Lines 3 through 10.

Deductions

Line 12

Enter the amount of compensation given to officers. Attach Form 1125-E to this form.

Line 13

Enter the salaries and wages paid (less any employment credits).

Line 14

Enter the cost of repairs and maintenance.

Line 15

Enter the costs incurred as a result of bad debts.

Line 16

Enter the cost of rent.

Line 17

Enter the total cost of taxes and licenses.

Line 18

Enter the amount of interest incurred in the activities of the business.

Line 19

Enter the amount of charitable donations made.

Line 20

Enter any depreciation not claimed on Form 1125-A or elsewhere on the return. Attach Form 4562 to this form.

Line 21

Enter the cost of depletion. Do not deduct oil and gas depletion.

Line 22

Enter the cost of advertising.

Line 23

Enter the costs of any pension, profit-sharing, and other similar plans.

Line 24

Enter the cost of employee benefit programs.

Line 25

This Line is reserved for future use.

Line 26

Enter the total of any other deductions and attach the relevant statements to this form.

Line 27

Add Lines 12 through 26 and enter the sum.

Line 28

Subtract Line 27 from Line 11 and enter the difference.

Line 29a

Enter the net operating loss deduction.

Line 29b

Enter the special deductions applied as indicated on Schedule C, Line 24.

Line 29c

Add Lines 29a and 29b and enter the sum.

Tax and Payments

Line 30

Subtract Line 29c from Line 28 and enter the difference.

Line 31

Enter the total tax as indicated on Schedule J, Part I, Line 11.

Line 32

This Line is reserved for future use.

Line 33

Enter the total payments and credits as indicated on Schedule J, Part III, Line 23.

Line 34

Enter the estimated tax penalty, and check the box provided if Form 2220 is attached to this form.

Line 35

If Line 33 is smaller than the total of Lines 31 and 34, enter the amount owed.

Line 36

If Line 33 is larger than the total of Lines 31 and 34, enter the amount overpaid.

Signature

Have the representative of the corporation that this form is being filed for sign in the space provided and enter the date the form was signed.

Title

Enter the title of the representative that signed this form.

Permission to Discuss Form with Preparer

Check “Yes” if you wish to allow the IRS to discuss this form with the preparer shown below. Otherwise, check “No”.

Paid Preparer Use Only

Preparer’s Name

Enter the name of the preparer.

Preparer Signature

Have the preparer sign the form in the space provided.

Date

Enter the date that the preparer signed the form.

Self-employed

Check the box provided if the preparer is self-employed.

Preparer Tax Identification Number

Enter the preparer’s Preparer Tax Identification Number (PTIN).

Firm Name

Enter the name of the firm that the preparer works for, if applicable.

Firm EIN

Enter the firm’s EIN, if applicable.

Firm Address

Enter the firm’s number, street, city or town, county or state, country, and ZIP code, if applicable.

Phone Number

Enter the preparer’s primary phone number.

Schedule C - Dividends, Inclusions, and Special Deductions

This section has three columns: Column (a), Dividends and Inclusions, Column (b), Percent (%), and Column (c) Special Deductions. Make sure that you are entering the correct amount in the correct column.

The amount to be written on Column (c) when applicable is obtained by multiplying the amounts written on Columns (a) and (b) for that row and entering the product.

Line 1

Enter the amount of dividends from less-than-20%-owned domestic corporations, excluding debt-financed stock.

Line 2

Enter the amount of dividends from 20%-or-more-owned domestic corporations, excluding debt-financed stock.

Line 3

Enter the amount of dividends on certain debt-financed stock of domestic and foreign corporations.

Line 4

Enter the amount of dividends on certain preferred stock of less-than-20%-owned public utilities.

Line 5

Enter the amount of dividends on certain preferred stock of 20%-or-more-owned public utilities.

Line 6

Enter the amount of dividends from less-than-20%-owned foreign corporations and certain FSCs.

Line 7

Enter the amount of dividends from 20%-or-more-owned foreign corporations and certain FSCs.

Line 8

Enter the amount of dividends from wholly owned foreign subsidiaries.

Line 9

Add Lines 1 through 8 and enter the sum.

Line 10

Enter the amount of dividends from domestic corporations received by a small business investment company operating under the Small Business Investment Act of 1958.

Line 11

Enter the amount of dividends from affiliated group members

Line 12

Enter the amount of dividends from certain FSCs.

Line 13

Enter the amount of foreign-source dividends received from a specified 10%-owned foreign corporation (excluding hybrid dividends).

Line 14

Enter the amount of dividends from foreign corporations not included on lines 3, 6, 7, 8, 11, 12, or 13 (including any hybrid dividends).

Line 15

This line is reserved for future use.

Line 16a

Enter the Subpart F inclusions derived from the sale by a controlled foreign corporation (CFC) of the stock of a lower-tier foreign corporation treated as a dividend and attach Form 5471 to this form.

Line 16b

Enter the Subpart F inclusions derived from hybrid dividends of tiered corporations.

Line 16c

Enter the amount of any other inclusions from CFCs under subpart F not included on line 16a, 16b, or 17.

Line 17

Enter the amount of any Global Intangible Low-Taxed Income and attach Forms 5471 and Form 8992 to this form.

Line 18

Enter the amount of the gross-up for foreign taxes deemed paid.

Line 19

Enter the amount of IC-DISC and former DISC dividends not included on Line 1, 2, and 3.

Line 20

Enter the amount of any other dividends not declared above.

Line 21

Enter the amount of deduction for dividends paid on certain preferred stock of public utilities.

Line 22

Enter the amount of deduction as indicated on Section 250 and attach Form 8993 to this form.

Line 23

Add column (a), Lines 9 through 20, and enter the sum here and on Page 1, Line 4.

Line 24

Add column (c) Lines 9 through 22, and enter the sum here and on Page 1, Line 29b.

Schedule J - Tax Computation and Payment

Part I - Tax Computation

Line 1

Check the box provided if the corporation is a member of a controlled group, and attach Schedule O to this form.

Line 2

Enter the amount of income tax.

Line 3

Enter the amount of base erosion minimum tax and attach Form 8991 to this form.

Line 4

Add Lines 2 and 3 and enter the sum.

Line 5a

Enter the amount of Foreign Tax Credit and attach Form 1118 to this form.

Line 5b

Enter the amount of credit as indicated on Form 8834 and attach Form 8834 to this form.

Line 5c

Enter the amount of general business credit and attach Form 3800 to this form.

Line 5d

Enter the amount of credit for prior year minimum tax and attach Form 8827 to this form.

Line 5e

Enter the amount of bond credits as indicated on Form 8912.

Line 6

Add Lines 5a through 5e and enter the sum.

Line 7

Subtract Line 6 from Line 4 and enter the difference.

Line 8

Enter the amount of personal holding company tax and attach Schedule PH to this form.

Line 9a

Enter the recapture of investment credit and attach Form 4255 to this form.

Line 9b

Enter the recapture of low-income housing credit and attach Form 8611 to this form.

Line 9c

Enter the amount of interest due under the look-back method-completed long-term contracts and attach Form 8697 to this form.

Line 9d

Enter the amount of interest due under the look-back method-income forecast method and attach Form 8866 to this form.

Line 9e

Enter the amount of alternative tax on qualifying shipping activities and attach Form 8902 to this form.

Line 9f

Enter the interest or tax due under Section 453A(c) and Section 453(l).

Line 9g

Enter any other relevant amount not declared above.

Line 10

Add Lines 9a through 9g and enter the sum.

Line 11

Add Lines 7, 8, and 10, and enter the sum.

Part II and Line 12

This section and line are reserved for future use.

Part III - Payments and Refundable Credits

Line 13

Enter the amount of 2020 overpayment credited to 2021.

Line 14

Enter the amount of 2021 estimated tax payments.

Line 15

Enter the amount of 2021 refund applied for on Form 4466.

Line 16

Add Lines 13, 14, and 15 and enter the sum.

Line 17

Enter the amount of tax deposited with Form 7004.

Line 18

Enter the amount withheld.

Line 19

Add Lines 16, 17, and 18 and enter the sum.

Line 20a

Enter the refundable credits from Form 2439.

Line 20b

Enter the refundable credits from Form 4136.

Line 20c

This Line is reserved for future use.

Line 20d

Enter any other refundable credits from a source not included above, and attach the relevant statements to this form.

Line 21

Add Lines 20a through 20d and enter the sum.

Line 22

This Line is reserved for future use.

Line 23

Add Lines 19 and 21 and enter the sum here and on Page 1, Line 33.

Schedule K - Other Information

Line 1

Check the box that corresponds to the accounting method being used. You may choose between:

• Cash
• Accrual
• Other (specify the method in the space provided)

Line 2

Enter the appropriate information corresponding to Business Activity Code Number (2a), Business Activity (2b), and Product or Service (2c) in the spaces provided.

Line 3

If the corporation is the subsidiary of an affiliated group or a parent-subsidiary controlled group, check “Yes” and enter the name and EIN of the parent corporation in the space provided. Otherwise, check “No”.

Line 4a

If any foreign or domestic corporation, partnership, trust, or tax-exempt organization directly owned 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation’s stock entitled to vote, check “Yes” and complete Part I of Schedule G (Form 1120) and attach it to this form. Otherwise, check “No”.

Line 4b

If any individual or estate directly owned 20% or more, or own, directly or indirectly, 50% or more of the total voting power of all classes of the corporation’s stock entitled to vote, check “Yes” and complete Part II of Schedule G (Form 1120) and attach it to this form. Otherwise, check “No”.

Line 5a

If the corporation directly owned 20% or more, or own, directly or indirectly, 50% of the total voting power of all classes of stock entitled to vote of any foreign or domestic corporation at the end of the tax year, check “Yes” and enter the following information in Lines 5a (i) through 5a (iv) below:

• Name of Corporation
• Employer Identification Number, if any.
• Country of Incorporation.
• Percentage Owned in Voting Stock.

Otherwise, check “No”.

Line 5b

If the corporation directly owned interest of 20% or more, or own, directly or indirectly, 50% of or more in any foreign or domestic partnership, or in the mutual benefit of a trust, check “Yes” and enter the following information in Lines 5a (i) through 5a (iv) below:

• Name of Corporation
• Employer Identification Number, if any.
• Country of Incorporation.
• Maximum Percentage Owned in Profit, Loss, or Capital.

Line 6

Check “Yes” if the corporation has paid dividends in excess of the corporation’s accumulated earnings and profits.

Line 7

If at any point during the tax year, a foreign person directly or indirectly owned at least 25% of the total voting power of all classes of the corporation’s stock entitled to vote, or at least 25% of the total value of all classes in the corporation’s stock, check “Yes”, and enter the following information in Lines 7a, 7b, and 7c respectively:

• Percentage Owned (7a)
• Owner’s Country (7b)
• Number of Forms 5472 attached.

Otherwise, check “No”.

Line 8

Check the box provided if the corporation issued publicly offered debt instruments with original issue discount.

Line 9

Enter the amount of tax-exempt interest received or accrued during the tax year.

Line 10

Enter the number of shareholders at the end of the tax year, if there were less than 100.

Line 11

If the corporation has an NOL for the tax year and is electing to forego the carryback period, check the box provided.

Line 12

Enter the total available NOL carryover from prior tax years.

Line 13

If the corporation’s total receipts and its total assets at the end of the year were less than $250,000, check “Yes”, enter the total amount of cash distributions and the book value of property distributions (other than cash), and the corporation will not be required to fill out Schedules L, M-1, and M-2. Otherwise, check “No”.

Line 14

If the corporation is required to file Schedule UTP, check “Yes” and attach Schedule UTP to this form. Otherwise, check “No”.

Line 15a

If the corporation made any payments in 2021 that would require it to file Form(s) 1099, check “Yes”. Otherwise, check “No”.

Line 15b

If “Yes” was checked above, check “Yes” if the corporation did or will file the required Form(s) 1099. Otherwise, check “No”.

Line 16

If the corporation had an 80%-or-more change in ownership, including a change due to redemption of its own stock within the tax year, check “Yes”. Otherwise, check “No”.

Line 17

If the corporation disposed of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction, check “Yes”. Otherwise, check “No”.

Line 18

If the corporation received assets in a section 351 transfer in which any of the transferred assets had a fair market basis or fair market value of more than $1 million, check “Yes”. Otherwise, check “No”.

Line 19

If during its tax year, the corporation made any payments that would require it to file Forms 1042 and 1042-S under chapter 3 (sections 1441 through 1464) or chapter 4 (sections 1471 through 1474) of the Code, check “Yes”. Otherwise, check “No”.

Line 20

If the corporation is operating on a cooperative basis, check “Yes”. Otherwise, check No”.

Line 21

If during the tax year, the corporation paid or accrued any interest or royalty for which the deduction is not allowed under section 267A, check “Yes” and enter the total amount of disallowed deductions in the space provided. Otherwise, check “No”.

Line 22

If the corporation has gross receipts of at least $500 million in any of the 3 preceding tax years, check “Yes” and attach Form 8991 to this form. Otherwise, check “No”.

Line 23

If the corporation had an election under section 163(j) for any real property trade or business or any farming business in effect during the tax year, check “Yes”. Otherwise, check “No”.

Line 24

If the corporation satisfies one or more of the following conditions, check “Yes”:

• The corporation owns a pass-through entity with current, or prior year carryover, excess business interest expense.
• The corporation’s aggregate average annual gross receipts (determined under section 448(c)) for the 3 tax years preceding the current tax year are more than $26 million and the corporation has business interest expenses.
• The corporation is a tax shelter and the corporation has business interest expenses.

Then attach Form 8990 to this form. Otherwise, check “No”.

Line 25

If the corporation is attaching Form 8996 to this form to certify as a qualified opportunity fund, check “Yes” and enter the amount from Form 8996, Line 15 in the space provided. Otherwise, check “No”.

Line 26

If since December 22, 2017, a foreign corporation directly or indirectly acquired substantially all of the properties held directly or indirectly by the corporation, and the ownership percentage was (by vote or value) for purposes of section 7874 greater than 50%, check “Yes” and list the ownership percentage by vote and by value. Otherwise, check “No”.

Schedule L - Balance Sheets per Books

This section has four columns split into two groups: Columns (a) and (b) under “Beginning of Tax Year” and Columns (c) and (d) under “End of Tax Year”. Make sure to keep these in mind to avoid any confusion when entering information.

All information that is entered here should correspond to the information on the records of the corporation.

Line 1 - Cash

Enter the cash balances at the beginning and end of the tax year. For the rest of the items in this section, make sure to enter the appropriate balances of the given items at the beginning and end of the tax year.

Line 2a - Trade Notes and Accounts Receivable

Enter the balances of trade notes and accounts receivable.

Line 2b - Less Allowance for Bad Debts

Enter the balances of the amount of allowance reduced to account for bad debts.

Line 3 - Inventories

Enter the balances of inventories.

Line 4 - US Government Obligations

Enter the balances of any US Government Obligations.

Line 5 - Tax-exempt Securities

Enter the balances of tax-exempt securities.

Line 6 - Other Current Assets

Enter the balances of any other current assets and attach the relevant statements to this form.

Line 7 - Loans to Shareholders

Enter the balances of any loans given to shareholders.

Line 8 - Mortgage and Real Estate Loans

Enter the balances of any mortgage and real estate loans.

Line 9 - Other Investments

Enter the balances of any other investments made and attach the relevant statements to this form.

Line 10a - Buildings and Other Depreciable Assets

Enter the balances of buildings and other depreciable assets.

Line 10b - Less Accumulated Depreciation

Enter the balances of the amount of depreciation accumulated.

Line 11a - Depletable Assets

Enter the balances of any depletable assets.

Line 11b - Less Accumulated Depletion

Enter the balances of the amount of depletion accumulated.

Line 12 - Land

Enter the balances of any land owned by the corporation, net of any amortization.

Line 13a - Intangible Assets

Enter the balances of any amortizable intangible assets owned.

Line 13b - Less Accumulated Amortization

Enter the balances of the amount of amortization accumulated.

Line 14 - Other Assets

Enter the balances of any other assets owned, and attach the relevant statements to this form.

Line 15 - Total Assets

Enter the balances of the total of all assets owned.

Line 16 - Accounts Payable

Enter the balances of accounts payable.

Line 17 - Mortgages, Notes, and Bonds Payable in Less Than 1 Year

Enter the balances of any mortgages, notes, and bonds payable in less than 1 year.

Line 18 - Other Current Liabilities

Enter the balances of any other current liabilities and attach the relevant statements to this form.

Line 19 - Loans from Shareholders

Enter the balances of loans from shareholders.

Line 20 - Mortgages, Notes, and Bonds Payable in 1 Year or More.

Enter the balances of any mortgages, notes, and bonds payable in 1 year or more.

Line 21 - Other Liabilities

Enter the balances of any other liabilities and attach the relevant statements to this form.

Line 22 - Capital Stock

Enter the balances of capital stock.

Line 23 - Additional Paid-in Capital

Enter the balances of any additional paid-in capital.

Line 24 - Retained Earnings

Enter the balances of retained earnings.

Line 25 - Adjustments to Shareholders’ Equity

Enter the balances of the adjustments to shareholders’ equity and attach the relevant statements to this form.

Line 26 - Less Cost of Treasury Stock

Enter the balances of the cost of treasury stock.

Line 27 - Total Liabilities and Shareholders’ Equity

Enter the total balances of liabilities and shareholders’ equity.

Schedule M-1 - Reconciliation of Income or Loss per Books with Income per Return

Line 1

Enter the amount of net income (loss) per the books.

Line 2

Enter the amount of federal income tax per the books.

Line 3

Enter the amount of excess capital losses over capital gains.

Line 4

Enter the amount of income subject to tax not recorded on the books for this year. Make sure to itemize them.

Line 5

Enter the expenses recorded on the books for this year and not deducted on this return for each of the following (make sure to itemize when necessary):

• Depreciation (a)
• Charitable Contributions (b)
• Travel and Entertainment (c).

Line 6

Add Lines 1 through 5 and enter the sum.

Line 7

Enter the amount of income recorded on the books this year that is not included on this return. Make sure to itemize each amount.

Line 8

Enter the amount of deductions on this return not charged against book income for this year for each of the following (make sure to itemize when necessary):

• Depreciation (a)
• Charitable Contributions (b)

Line 9

Add Lines 7 and 8 and enter the sum.

Line 10

Subtract Line 9 from Line 6 and enter the difference.

Schedule M-2 - Analysis of Unappropriated Retained Earnings per Books

Line 1

Enter the balance at the beginning of the year.

Line 2

Enter the net income or loss per the books.

Line 3

Enter any other increases. Make sure to itemize them.

Line 4

Add Lines 1, 2, and 3 and enter the sum.

Line 5

Enter the amount of distributions made of each of the following:

• Cash (a)
• Stock (b)
• Property (c)

Line 6

Enter any other decreases. Make sure to itemize them.

Line 7

Add Lines 5 and 6 and enter the sum.

Line 8

Subtract Line 7 from Line 4 and enter the difference.

Tips when filling out Form 1120

Considering the length of the 1120 Form, it is very important to make sure that one is putting the correct and necessary information in each part to avoid any legal issues.

Keep the form in a safe and secure area. As Form 1120 will likely need to be submitted alongside several other attached forms, it is very important that it is kept in a safe area and submitted through secure and trustworthy means to avoid sensitive information being leaked and important documents being lost.

Double-check the information entered. Make sure that you have entered the correct information in the appropriate fields. It may be beneficial to consult the instructions of Form 1120 on the IRS website if you require more details on what must be entered in the form.

Practice Good Contract Management. Keep a copy of this form (filled out) in a safe place. This is to make sure that you have a copy of it ready when necessary, whether for legal purposes or simply to serve as a record or backup.