The purpose of the Schedule M-1 is to reconcile the entity’s accounting income (book income) with its taxable income. Because tax law is generally different from book reporting requirements, book income can differ from taxable income. Below is a list of common book-tax differences found on the Schedule M-1. The list is not all-inclusive.
Income on tax return, not included on books
Expenses on books, not included on tax return
Income on books, not included on tax return
Deductions on tax return, not included on books
You will enter this information into the TaxAct® program as follows: