1120-POL Instructions 2023 - 2024

Form 1120-POL is the tax return of certain political organizations as the name of the form suggests. Also known as the U.S. Income Tax Return for Certain Political Organizations, the instructions to file Form 1120-POL is very demanding as filing the return is quite challenging. 

Nevertheless, Form 1120-POL should be treated the same way as the federal income tax return. It reports the income the political organization has earned and helps figure out tax liability to pay the IRS.

Here is a line-by-line instruction to file Form 1120-POL for the upcoming tax season.

Line-by-Line Form 1120-POL 2021 Instructions

Political Organization Income

Line 1. Report the dividends the political organization has earned and attach the forms that report it. 

Line 2. Report the interest the political organization has earned.

Line 3. Report the gross rents.

Line 4. Report the gross royalties.

Line 5. Enter the capital gain net income and attach Schedule D.

Line 6. Enter the net gain (or loss) as exactly as shown on Form 4797 line 17 and attach it.

Line 7. Enter the other income and nonexempt function expenditures 

Line 8. Add lines 1 through 7 and enter the result

Political Organization Deductions

Line 9. Enter the salaries and wages paid to employees.

Line 10. Enter the amount paid in repairs and maintenance costs. 

Line 11. Enter the rents paid for the political organization.

Line 12. Enter the taxes and licenses paid.

Line 13. Enter the interest paid. 

Line 14. Enter the depreciation amount as shown on Form 4562.

Line 15. Claim other deductions you can take and attach the statements. 

Line 16. Add lines 9 through 15 and enter the results. This is your total deduction.

Line 17. Enter the:

  • Amount of net investment income on Line 17(a)
  • Enter the aggregate amount expended for an exempt function on Line 17(b) and attach the statement for it.
  • Enter the results in Line 17(c)

Line 18. Enter the specific deduction of $100, but this isn’t allowed for newsletter funds under section 527(j).

Figure out tax liability

Line 19. Enter taxable income by subtracting the amount on line 18 from line 17(c). 

Line 20. Enter the tax liability.

Line 21. Enter the tax credits the political organization can claim.

Line 22. Enter the total tax.

Line 23. Complete line 23 by figuring out whether or not you’ve exceeded your tax liability. 

Line 24. If your total payments was less than the tax liability, enter the tax owed.

Line 25. If the total payments was more than the tax liability, enter the tax overpayment. 

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