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Line 3 Federal tax classification A sole proprietor business operates under the owners Social Security number and hasnt been registered as another type of business. Taxes apply to single-member LLCs in the same way. The other boxes correspond to C corporation, S corporation, Partnership and Trust/estate businesses.
Schedule 3 (Form 1040), Additional Credits and Payments Can claim any credit that you didnt claim on Form 1040 or 1040-SR, such as the foreign tax credit, education credits, general business credit.
Box 3: Generally, this amount is shown on the line labeled Other income on Form 1040.
Schedule A Line 6 is for entry of Other Income Taxes. A Utility Users tax is Not an income tax so is not entered on Schedule A or anywhere else on a federal tax return. February 6, 2023 10:51 AM.
Part I of Form 1040 Schedule 3 is for nonrefundable credits, including the Foreign Tax Credit, Child and Dependent Care Credit, education credits, and more. Line 6 of Schedule 3 is for less common credits, including the Credit for the Elderly or Disabled, the adoption tax credit, and more.
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Line 3: Report business income or loss on Schedule C, which you need to file for self-employment income, such as freelancing, gig work, and having your own business.

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