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FAQ - Form 5500 - Schedule I

What is the purpose of Form 5500 - Schedule I?
Here is what you need to know about this form. The purpose of Form 5500– Schedule I is to provide the income tax agency with the information necessary when evaluating a taxpayer's income and expenses. For instance, if you are claiming a health tax credit, Form 5500– Schedule I may indicate your filing status as a person who has been claimed as a dependent for federal income tax purposes by another person or by yourself. The purpose of Form 5500– Schedule I is to provide the income tax agency with the information necessary when evaluating a taxpayer's income and expenses. For instance, if you are claiming a health tax credit, Form 5500– Schedule I may indicate your filing status as a person who has been claimed as a dependent for federal income tax purposes by another person or by yourself. What are your responsibilities when you complete Form 5500– Schedule I? This form was designed for taxpayers to report their most current information. The income you reported on your most recent return, as well as your most recently determined deductions and deductions allowed, are used to determine an amount to deduct from your gross income when you fill out Form 5500– Schedule I. This form helps you report your tax information on your most recent return—the same return that you filed (filing status and amount withheld on your most recent Form 1040 or Form 1040A for income tax or federal income tax purposes) and that you want the IRS to consider as a valid tax return. You should make sure you check the box in the appropriate boxes of Schedule I that gives the IRS information about your expenses, including a statement explaining the reason for your deduction. If the IRS sends you a tax information letter, fill out Form 5500– Schedule I to provide information about your most recent income and deductions. When you complete Form 5500– Schedule I, you must include any relevant instructions that you received from the IRS. If you made a claim for a refund in a federal tax return filed for the current tax year, you may be asked to provide additional information. The instructions should be in your return and must include the information you reported on your most recent return. Form 5500– Schedule I is completed for taxpayers who file their income tax returns by January 31 of the year after the tax year (filing status and amount withheld from income on Form 1040, 1040A, 1042, 1045, 1046, and 1042A for income tax or federal income tax purposes).
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