Which IRS form is used by taxpayers to report rental income?

The correct form used by taxpayers to report rental income is Schedule E. This form is specifically designed for reporting income and losses from rental real estate, as well as income from partnerships, S corporations, estates, trusts, and more. When taxpayers receive rental income, they are required to report it on Schedule E, which captures the details of the income earned and allows for the deduction of appropriate expenses related to the rental property.

Schedule C is utilized by sole proprietors to report income from self-employment, while Schedule SE is used to calculate self-employment tax for individuals who earn income through self-employment. Schedule A, on the other hand, is for itemizing deductions, such as medical expenses or mortgage interest, rather than reporting specific sources of income. Thus, Schedule E is the appropriate form for reporting rental income due to its specific focus on real estate and related investments.