Basics on the Form 1120 Corporate Income Tax Return
The IRS Form 1120 (US Corporation Income Tax Return) is the official form that corporations in the United States use to report their income, gains, losses, deductions, and credits to the Internal Revenue Service (IRS).
This form is used to calculate the amount of federal income tax a corporation owes. A corporation will often need to file a state corporate income tax return, depending on where the corporation operates.
Sample Form 1120 Tax Return for a Landscaping Business
In this example video tutorial, we prepare a Form 1120 for the 2022 tax year for a U.S. corporation that operates a landscaping business in Florida.
The entity was formed as a Florida for-profit corporation with two equal owners, John Smith and Jane Doe. The corporation issued 1,000 shares of $1 par value common stock. John Smith and Jane Doe each contributed $10,000 of cash to start the company.
The company purchased landscaping equipment, hired employees, and generated $246,289 of revenue in its first year of operations. The company also claims the work opportunity tax credit and a federal fuel tax credit.
What are the Basics of the Form 1120 Tax Filing?
Income & Expense Reporting. To report the corporation’s income, expenses, gains, losses, credits, estimated tax payments, and other transactions.
Tax Calculation. Corporations are generally subject to a 21% tax rate on its net taxable income. The tax rate is subject to change depending upon legislation passed by Congress.
A corporation’s net taxable income may differ from its net income per books. The corporation reports any book-to-tax adjustments on Schedule M-1 or Schedule M-3. For example, many corporations keep their internal accounting records using generally accepted accounting principles (GAAP), which often differ from U.S. federal tax rules.
Who Must File
C Corporations. Domestic corporations must file Form 1120 annually. Most domestic corporations are, by default, taxable as a C corporation. If a company forms a limited liability company (LLC) that elects to be taxed as a C corporation by filing Form 8832 (Entity Classification Election), the LLC must file Form 1120.
Due Date. Form 1120 must be filed annually and is due on or before the 15th day of the 4th month following the close of the corporation’s tax year. For a calendar year corporation, the due date is generally April 15. Extensions can be requested by filing Form 7004 (Application for Extension of Time to File).
Additional Schedules and Tutorials
- Form 1120-X Amended Corporate Tax Return
- Form 1120 Real Estate Investment Entity
- Form 1120 with Form 5472 for Foreign-Owned Corporation
- Form 1120 for the 2021 Tax Year
- Form 851 Affiliations Schedule
- Form 1120 Schedule L Balance Sheets
- Schedule B Form 1120 for Additional Information
- Schedule C Form 1120 for Dividends & Special Deductions
- Schedule G Form 1120 for Substantial Shareholders
- Schedule PH Form 1120 for Personal Holding Company
- Schedule N Form 1120 for Foreign Operations
YouTube Form 1120 Playlist
Please view our YouTube playlist here for a complete collection of Form 1120 related tutorials.
Additional Information
Corporations can find more information in the Form 1120 Instructions and IRS Publication 542 (Corporations).