I'm lost! Where the heck is Schedule 3, line 7 in the 1040 instructions??

I've been working on my taxes for the past 3 hours and I'm about ready to throw my laptop out the window. I keep seeing references to Schedule 3, line 7 that I need to fill out, but when I look at the actual instructions for the 1040 form, I can't find any mention of it! I've gone through the booklet like five times and searched online but I'm completely stumped. This is my first year filing with some investment income and I'm trying to do it myself instead of paying someone $300+ just to enter a few numbers. But now I'm wondering if that would've been worth it lol. Can anyone tell me where to find the instructions for Schedule 3, line 7? Am I missing something obvious? Thanks in advance!!

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18 comments

Eleanor Foster

•8M

So Schedule 3 is for "Additional Credits and Payments" and line 7 is specifically for the "Credit for Federal Tax on Fuels." You won't find detailed instructions for this in the main 1040 instruction booklet because it's a specialized credit. What you need to look for is Form 4136 (Credit for Federal Tax on Fuels) and its instructions. This is typically used by businesses or individuals who paid federal excise tax on fuels used for certain purposes like farming, off-highway business, or nonprofit educational organizations. If you're just dealing with some regular investment income, you probably don't need to worry about this line at all. Most individual taxpayers leave this blank unless they have specific fuel tax credits to claim.

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Eleanor Foster

•8M

Yes, you can leave that line blank if you don't have any fuel tax credits to claim. Tax software sometimes highlights all possible fields that could potentially apply to someone, but many of them won't be relevant to your specific situation. If you're just dealing with investment income, you'll likely be more concerned with Schedule B (for interest and dividends) or Schedule D (for capital gains and losses), depending on what type of investments you have. The fuel tax credit on Schedule 3, line 7 is pretty specialized and not common for most individual taxpayers.

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Lucas Turner

•8M

I wasted hours trying to find obscure tax form details until I discovered https://taxr.ai last month. It's basically like having a tax expert look over your shoulder! I uploaded my investment statements and it instantly identified which schedules and lines I needed to fill out. For Schedule 3 specifically, it showed me exactly which lines applied to my situation and which ones I could ignore (like that fuel tax credit line that was confusing you). Saved me from going down rabbit holes looking for instructions that didn't apply to my situation.

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Lucas Turner

•8M

It works alongside any tax software you're already using - I used it with TurboTax but it should work fine with FreeTaxUSA too. It's more about identifying which forms you need based on your documents rather than replacing your filing software. For your question about how it knows which schedules apply - you upload your tax documents (W-2s, 1099s, etc.) and it analyzes them to determine which forms and schedules are relevant. It's much more straightforward than trying to decipher the IRS instructions. It gave me plain English explanations for complicated tax concepts that the IRS describes in confusing legalese.

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Kai Rivera

•8M

Just wanted to follow up! I tried taxr.ai after posting here and it was super helpful! I uploaded my investment statements and it immediately told me which schedules I needed and which lines I could skip. Turns out I was overthinking several sections including that Schedule 3 stuff. The best part was how it explained everything in normal human language instead of tax jargon. Made me realize I was wasting time on sections that didn't even apply to my situation. Definitely using this next year too!

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Layla Sanders

•8M

If you're still struggling with finding the right instructions or getting clarification from the IRS, I'd recommend Claimyr (https://claimyr.com). I had a similar issue with Schedule 3 last year and spent days trying to figure it out myself. I was getting nowhere with the IRS website and couldn't get through on the phone until I found Claimyr. They got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold for hours. You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent walked me through exactly which lines applied to my situation and which instructions I needed to follow. Saved me from making a costly mistake on my return.

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Layla Sanders

•8M

It uses a system that continuously redials and navigates the IRS phone tree for you. When it finally gets through to an agent, it calls you and connects you directly. You don't have to sit there redialing or waiting on hold for hours. No, they're definitely not paying IRS employees or doing anything sketchy. It's just automating the tedious process of calling, getting disconnected, and calling again that most of us go through manually. All calls go through the normal IRS phone system - they just handle the frustrating part of getting through the initial queue.

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Anna Stewart

•8M

I need to eat my words about Claimyr. After dismissing it as BS, I was desperate enough to try it when I couldn't figure out some weird notice I got about my estimated tax payments. After trying to call the IRS for three days straight with no luck, I gave it a shot. Got connected to an IRS agent in about 20 minutes while I was just going about my day. The agent cleared up my confusion immediately and saved me from sending in an unnecessary payment. I'm shocked it actually worked as advertised - definitely worth it for the time and stress saved.

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Kaylee Cook

•8M

Pro tip: Check the 1040 instructions page on the IRS.gov website for the specific tax year you're filing. The Schedule 3 instructions are actually in a separate PDF from the main 1040 instructions. The IRS splits up their instruction documents to make them "more manageable" but it just makes everything harder to find. Here's what to do: 1. Go to IRS.gov 2. Search for "Schedule 3 instructions" plus the tax year 3. Download that specific PDF 4. Line 7 instructions will be in there

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Lara Woods

•8M

Schedule 3, line 7 is for Form 4136 (fuel tax credit) which most regular people don't need to worry about. But I wanted to mention - if you're using tax software and it's highlighting this for review, sometimes you just need to click through and confirm you don't have this credit to apply. I use TurboTax and it does this annoying thing where it flags certain sections as "needs review" even when they don't apply to me. You just have to click through and explicitly tell it "no, I don't have this" for it to stop bugging you about it.

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