How to Report Income and Deductions

Form W-2G. Certain Gambling Winnings. Report amount from box 1 of W-2G on Form 1040, line 21. Professional gamblers must report it on schedule C or C-EZ (Form 1040).
Form 1042-S. Form 1042-S is used to report income paid to a non-resident regardless of whether the payment is taxable. The form has a number of purposes. It can be used to report wages exempt under a tax treaty, wages earned as an independent contractor, royalties, and scholarship or fellowship grants.
Form 1098-C. Contributions of Motor Vehicles, Boats and Airplanes. Report the allowable amount on schedule A, line 17.
Form 1098-E. Student Loan Interest Statement. To claim deduction, enter the allowable amount from box 1 of 1098-E on Form 1040, line 33 or Form 1040A, line 18. If you did not get 1098-E or you paid qualifying interest that is not reported on 1098-E, you can also deduct those amounts.
Form 1098-T. Qualified tuition and related expenses. Box 1--Payments received for qualifying tuition and related expenses. Box 2--Amounts billed for qualifying tuition and related expenses. Box 5- Scholarships and grants. Box 8-- If at least half time student. Box 9--If a graduate student.
For tuition and fee deduction on 2009 tax return (This deduction is not allowed in 2010), complete Form 8917 and take deduction on line 34 of Form 1040. On Form 8917, line 1, enter only the amount you paid in 2009 (for yourself, your spouse or dependent student) for qualified expenses to an eligible postsecondary institution for academic period beginning in 2009 and the first 3 months of 2010.
For education credit, complete Form 8863 and take credit on line 49 of Form 1040.
(If you are a dependent student, you are not eligible for the education credit).

1099-B. Proceeds From Broker Proceeds from Broker and Barter Exchange Transactions.
Use the information provided on the Form 1099-B to complete Schedule D (Form 1040).
1099-C. Cancellation of Debt.
Amount of Debt canceled (box 2). There are many exclusions and exceptions that can make all or part of this amount nontaxable. Read IRS Publication 4681. Canceled Debts, Foreclosures, Repossessions and Abandonments.
Report taxable amount as under:
*Nonbusiness debt, on line 21 of Form 1040 or 1040NR.
* Nonfarm sole proprietorship debt on line 6 of schedule C (Form 1040) or schedule on line 1 of schedule C-EZ (Form 1040).
* Nonfarm rental activity debt on line 3 of schedule E (Form 1040).
* Farm rental activity debt on line 6 of Form 4835.
*Farm debt and you are a farmer on line 10 of schedule F (Form 1040).
Form 1099-G. Certain Government Payments.
Unemployment compensation (box 1), report the payment, which is more than any allowed non-taxable amount, on Form 1040, line 19. In 2009, the non taxable umemployment compensation was $2400. In 2010, the entire umemployment compensation is taxable.
State or local income tax refunds, credits, or offsets (box 2), this amount is reported as income only if you itemized your deduction in 2008 and claimed deduction for these taxes. Use worksheet for Form 1040, line 10 and report on line 10.
ATAA payments (b0x 5), report on Form 1040, line 21.
Taxable grants (box 6), report on Form 1040, line 21, or on schedule C, C-EZ, E, or F or Form 4835.
Agricultural payments (box 7) and Market Gain (box 9) , report on schedule F.

1099-R. Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.
Distributions from IRA, report on line 15b of Form 1040 except if you have qualified rollover. If you have qualified rollover, report it on line 15a. Then on line 15b enter 0 if entire amount is qualified rollover, or the balance taxable amount.
Distributions from pensions, annuities, 401(k), 403(b) etc., report on line 16b of Form 1040 if the amount is fully taxable. If the amount is not fully taxable, report on line 16a. Then on line 16b report the taxable amount.
(If you owe additional tax on the distributions, you need to file Form 5329. Additional Taxes on Qualified Plans(Including IRAs) and Other Tax-Favored Account.)

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2. Head of Household
Exemptions for Dependents
1. Requirements for claiming a dependent
2. Child of separated or divorced parents
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2. Filing Requirement for a Dependent
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1. Moving Expenses
2. Itemized deductions
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