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Schedules K-2 and K-3 generally must be filed with a partnerships Form 1065, U.S. Return of Partnership Income, or an S corporations Form 1120-S, U.S. Income Tax Return for an S Corporation.
Schedule 3: Supporting documentation for tax form 1040 if box 12b is checked. This Schedule is used to declare your capital gains or losses for items such as real estate, shares and mutual funds in addition to any other capital properties you have disposed of.
This is question 40a on the FAFSA. The response indicates the total amount of education credits (American Opportunity Tax Credit and Lifetime Learning Tax Credit) the student (and his/her spouse) received in 2021. Amounts can be found on IRS Form 1040 Schedule 3-line 3.
Schedule 3 has the additional information added in 2019, Part II - Other Payments and Refundable Credits. If entries are made on Schedule 3 the form would be attached to the Form 1040 or Form 1040-SR.
Line 6 is the total employee expenses that you are claiming(the sum of all the expenses you entered and is done automatically). If you are entering expenses, make sure you have an amount for each item you said you would be claiming.
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Sched- ule 3 is to report refundable and nonre- fundable credits and other payments not entered on Form 1040 or 1040-SR. Use Schedule 3 if you have nonrefunda- ble credits, other than the child tax credit or the credit for other dependents, or other payments and refundable credits.
The 2022 Schedule 3 Instructions are not published as a separate booklet. Instead, you will need to read the Schedule 3 line item instructions found within the general Form 1040 instructions booklet.
Who needs to file Form 1040 Schedule 3? Not everyone needs to file Schedule 3 with their federal income tax return. You only need to file Schedule 3 if youre claiming any of the tax credits or made any of the tax payments mentioned above.
The refundable credits on Schedule 3 include: The net premium tax credit and the health coverage tax credit, which help offset the cost of health insurance for people with low or moderate income. Qualified sick and family leave credits.
Essentially, filers of Form 1065, U.S. Return of Partnership Income, Form 1120-S, U.S. Income Tax Return for an S Corporation, and Form 8865 that have cross-border activities, investments, owners, or income may need to file Forms K-2 and K-3 in the upcoming year.

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