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Form 1040-SE: 1040 (Schedule E)
IRS Form 1040 (Schedule E) is used to report supplemental income and loss for individuals, estates, or trusts filing their Form 1040. The standard mileage rate for rental activities increased to 70 cents a mile for 2025.
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IRS Form 1040-SE - 1040 (Schedule E)
IRS Form 1040 (Schedule E) is used to report supplemental income and loss for individuals, estates, or trusts filing their Form 1040. The standard mileage rate for rental activities increased to 70 cents a mile for 2025.
Risk Radar
Scan points- 1Do not report regular interest from a REMIC on Schedule E; use Form 1040 or 1040-SR line 2b instead.
- 2Failing to enter code “6” on line 1b when reporting royalty income/expenses.
- 3Reporting partnership expenses from a passive activity without filing Form 8582 (if required).
- 4Combining unreimbursed partnership expenses with other amounts on line 28 incorrectly.
- 5Not checking the at-risk box in Part II, column (f) for an activity subject to those rules.
Plain English
This form allows filers to detail all the extra money earned or lost from various sources, such as rental properties or royalties, that aren't covered elsewhere on Form 1040. It helps calculate your total taxable income by tracking specific gains and expenses for different activities. Estates and trusts use this instead of other forms like Schedule F.
Submission Date
- Filing date: 2025-12-18 17:10:42
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when reporting supplemental income and loss from activities like rental real estate or royalties on Form 1040.
- Do not use it when reporting income/loss solely from wages, as that is typically reported elsewhere (though Schedule E can summarize it).
- Check Form 8995 or 8995-A instead when claiming a deduction for qualified business income.
Form selector
Use this form or another form?
Single-member domestic LLC
The LLC is not treated as separate entity, but you may elect corporate treatment.
✓ Check Form 8832 for election details.
Rental property with part interest
Only report your portion of the income and expenses from the rental real estate property.
✓ Ensure lines 1a, 1b, and 2 are completed for that specific property.
Business interest expense is limited
Use this form to determine the amount of excess business loss resulting from limitations on your Schedule E activity.
✓ This disallowed loss must be carried forward as a net operating loss.
Deadline or filing window
The instructions do not specify a filing deadline, but the form reports income and loss for the tax year. If you have rental real estate activities, complete lines 1a, 1b, and 2 for each property when reporting on Schedule E.
Checklist
What you need before filling it out
Rental Real Estate Income/Expenses
Part I of Form 1040-SE · Schedule E
Standard Mileage Rate (2025)
Instructions p.1 · General Instructions for Schedule E
Section 179 Deduction Limit (2025)
Instructions p.1 · Form 1040-SE / Related Forms
Business Interest Limitation Calculation
Instructions p.1 / Form 8990 · Schedule E (via Form 8990)
Disallowed Loss Reporting
Instructions p.1 / Form 461 · Schedule 1 (Form 1040), line 8p
Rental Property Identification
Part I, Line 1b · Form 1040-SE
Before you submit
- 1Complete lines 1a, 1b, and 2 for every rental real estate property listed on Part I.
- 2Ensure the standard mileage rate used reflects 70 cents per mile if applicable to rental activities.
- 3If business interest is limited, confirm Form 8990 was used to determine the limitation status.
- 4Verify that any disallowed loss from the interest limitation will be reported on Schedule 1 (Form 1040), line 8p via Form 461.
- 5Confirm proper tracing rules were applied when allocating debt proceeds and repayment for loans.
- 6If you own a part interest, ensure only your portion of income/expenses is reported on Schedule E.
- 7Check if Form 8995 or 8995-A was used to claim Qualified Business Income deduction.
How to file this form
- 1Complete Part I of Form 1040-SE by entering income and expenses for each rental real estate property, ensuring code '6' is used on line 1b if the property generates royalties.
- 2Determine if your business interest expense is limited using Form 8990 and report any resulting disallowed loss via Form 461 to be included on Schedule 1 (Form 1040), line 8p.
- 3Calculate and enter income/expenses from royalty activities onto the appropriate lines of Part I, ensuring proper tracing rules are followed for debt allocation.
- 4Finalize all calculations and review the form before signing it.
Known limitations
- 1Royalty income not derived in the ordinary course of a trade or business reported on Schedule E is generally not considered income from a passive activity.
- 2If rental real estate activities are your only passive activities, and you meet all specified conditions, your rental real estate losses are not limited by the passive activity loss rules, and Form 8582 may not be needed.
- 3If you used a unit as a home but rented it for fewer than 15 days in 2025, do not report the rental income or deduct any rental expenses on Form 1040 (Schedule E).
- 4Expenses related to days of personal use never qualify as rental expenses and must be allocated based on the number of days of personal use to total use of the property.
- 5If you are treating items differently than how a partnership or S corporation reported them, you may need to file Form 8082.
- 6Any reduction to your loss due to excess business loss rules will not be reflected on Schedule E; this limitation is figured separately on Form 461.
Field map
Compact field-by-field guide
Personal Info
3 items
Enter your legal first and last name as shown on your Social Security card.
Your SSN must match IRS records exactly.
Current mailing address including street, city, state, and ZIP code.
Filing Status
1 items
Select: Single, Married Filing Jointly, Married Filing Separately, Head of Household, or Qualifying Surviving Spouse.
Income
1 items
Sum of all income sources — wages, interest, dividends, business income, capital gains, unemployment, retirement, and other income.
Adjustments
1 items
Total income minus above-the-line deductions such as IRA contributions, student loan interest, and HSA contributions.
Deductions
1 items
Choose the higher of the standard deduction for your filing status or total itemized deductions from Schedule A.
Tax
1 items
AGI minus deductions. This determines your tax bracket and the amount of tax owed.
Payments
1 items
Sum of federal tax withheld, estimated tax payments, and refundable credits like the Child Tax Credit.
Signatures
1 items
You must sign and date the return. Unsigned returns are invalid.
Almost done reviewing the fields?
Fillable formOpen in Editor->The current edition is 20/25, and instructions reference future developments at IRS.gov/ScheduleE. For tax years beginning in 2025, the standard mileage rate increased to 70 cents per mile.
What changed or needs a fresh check
- Edition date — confirm revision reads 20/25.
- Latest information link — confirm reference to IRS.gov/ScheduleE.
- Standard mileage rate for 2025 — confirm it is 70 cents per mile.
- Section 179 maximum deduction (for 2025) — confirm the amount is $2,500,000.
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed IRS Form 1040 (Schedule E) for records.
- 2If you receive an IRS notice, it may be because amounts reported by a partnership or S corporation on its Schedule K-1 do not match what was reported on your return.
- 3If you are reporting income from a foreign trust with a U.S. beneficiary in 2025, keep records to substantiate the income received by the trust as a result of transferred property.
- 4Do not attach the Schedule K-1 (Form 1041) to your return; keep it for your own records.
Sources
- SRCInstructions p.4 — A working interest in an oil or gas well held directly or through an entity without limiting liability is not a passive activity even if you did not materially participate.
- SRCInstructions p.5 — For rental real estate property, line 1a requires the street address, city/town, state, and ZIP code; for foreign properties, it requires city, province/state, country, and postal code.
- SRCInstructions p.5 — If you used the unit as a home and rented it out for fewer than 15 days in 2025, do not report rental income or deduct any rental expenses.
- SRCInstructions p.8 — On Schedule E line 21, enter 'Form 6198' in the space to the left; attach Form 6198 to your return for royalty properties.
- SRCInstructions p.8 — If you have a rental real estate loss from a passive activity, you may need to complete Form 8582 to determine the amount of loss to enter on line 22.
- SRCInstructions p.10 — Line 27 requires following instructions if answered 'Yes,' as amounts reported by the partnership or S corporation must match your return.
- SRCInstructions p.11 — If you have estimated taxes credited from a trust (Schedule K-1, box 13, code A), enter 'ES payment claimed' and the amount on line 37 of Form 1040 (Schedule E) without including it in the total for line 37.
Common confusion points
What is the difference between passive and non-passive activities?
A working interest in an oil or gas well held directly or through an entity without limiting liability is not a passive activity, even if you didn't materially participate.
→ Check Instructions p.4.
When must I complete Form 8582 regarding my rental losses?
You may need to complete Form 8582 to determine the allowable loss amount on Schedule E line 22, especially if your loss is from a passive activity that might be limited by passive activity loss rules.
→ Check Instructions p.8.
How do I calculate expenses when I use my property as a home?
You must allocate expenses based on days of personal use to total use; for example, 7 days of personal use out of 70 total days means 10% (7 ÷ 70) of expenses are not rental expenses.
→ Check Instructions p.5.
What happens if my loss is from a partnership or S corporation?
Your loss may be reduced by basis rules, at-risk rules, and passive activity loss rules; any reduction due to excess business loss rules (figured on Form 461) will not appear on Schedule E itself.
→ Check Instructions p.8.
Do I need to attach anything when reporting a royalty property?
If you enter an amount on Schedule E line 21 from royalty properties, you must also enter 'Form 6198' in the space to the left of line 21 and attach Form 6198.
→ Check Instructions p.8.
How do I report estimated tax payments from a trust?
If you have estimated taxes credited from a trust (Schedule K-1, box 13, code A), enter 'ES payment claimed' and the amount on line 37 of Form 1040 (Schedule E) without including it in the total calculation for line 37.
→ Check Instructions p.11.
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Questions about IRS Form 1040-SE
What is IRS Form 1040-SE used for?
This form allows filers to detail all the extra money earned or lost from various sources, such as rental properties or royalties, that aren't covered elsewhere on Form 1040. It helps calculate your total taxable income by tracking specific gains and expenses for different activities. Estates and trusts use this instead of other forms like Schedule F.
Who must file IRS Form 1040-SE?
Individuals, estates, and trusts must file IRS Form 1040 (Schedule E) to report supplemental income or loss from various sources.
What information does IRS Form 1040-SE require?
The form collects details in Part I for general information, Part II for specific activity income/loss tracking, and Part IV if the filer holds a residual interest in a REMIC. It also tracks unreimbursed expenses on line 28.
Where do I file IRS Form 1040-SE?
The instructions do not specify a particular service center address; general filing mechanics apply unless otherwise noted on the form itself.
How do I complete IRS Form 1040-SE?
Fill out Part I first to provide general details. Then, complete Part II for each activity, ensuring you check the at-risk box if applicable and use Form 6198 for losses. Finally, review Part IV if reporting REMIC income/loss before signing.
What happens if IRS Form 1040-SE is filed incorrectly?
Filing incorrectly means the IRS may process the return with inaccurate income or loss figures, potentially leading to an underpayment or overpayment determination by the agency.
What is the difference between passive and non-passive activities?
A working interest in an oil or gas well held directly or through an entity without limiting liability is not a passive activity, even if you didn't materially participate. Check Instructions p.4.
When must I complete Form 8582 regarding my rental losses?
You may need to complete Form 8582 to determine the allowable loss amount on Schedule E line 22, especially if your loss is from a passive activity that might be limited by passive activity loss rules. Check Instructions p.8.
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