Menu

Search

Knowledge Base


10173: 1040 - Line 1 Exceeds W2 Income


1040 Individual

What amounts are reported on Form 1040, line 1?

 

Items reported on line 1 include:

  • Wages reported on Form W-2, box 1
  • Household employee wages not reported on Form(s) W-2 
  • Tip income not reported on line 1a
  • Medicaid waiver payments not reported on Form(s) W-2
  • Taxable dependent care benefits from Form 2441, line 26
  • Employer-provided adoption benefits from Form 8839, line 29
  • Wages from Form 8919, line 6
  • Other earned income
  • Disability Pensions
  • Taxable Scholarships & Fellowship Grants
  • Excess Deferred Compensation
  • Employer-Provided Expenses
  • Foreign Employers Compensation (FEC)
  • Nontaxable combat pay election

Notes on data entry options:

Disability Pensions - If the taxpayer has not reached the minimum retirement age set by the employer, this amount may be reported on line 1. The checkboxes 1099-R for disability? and If so, reported as wages on the 1040? are located on the 1099 screen under Additional Information for this Distribution. Unselect the second box and the income will report on the Pensions and Annuities line of Form 1040 instead.

Employer-Provided Dependent Care Benefits - Some or all of these benefits may be excludable. These benefits are reported on Form W-2 in box 10; any taxable portion will be reported on line 1. The Literal DCB appears in some years per IRS guidelines. Review Form 2441 for more information regarding the taxable portion.

Employer-Provided Adoption Expenses - Some or all of these benefits may be excludable. These benefits are reported on the W-2 in box 12; any taxable portion will be reported on line 1 with the literal AB. Review Form 8839 in view mode for more information regarding the taxable portion.

Scholarships & Fellowships - Some or all of these benefits may be excludable. Any taxable portion will be reported on line 1 with the literal SCH.  If the amount was not reported on Form W-2, review screen 3 to see if there is an amount keyed in the field marked Taxable scholarships not reported on W-2.

Excess Deferred Compensation - Amounts in excess of the limit for the retirement plan may be reported on line 1. Generally, these amounts are reported in box 12 of Form W-2.

Employer-Provided Expenses - Reimbursements for expenses not included in box 1 of Form W-2 will be reported on line 1 as income.  Go to the 2106 screen and check for entries in boxes 7a and 7b under the heading Reimbursements NOT included in Box 1 of Form W-2.

Foreign Employers Compensation (FEC) - Amounts from the FEC screen may be reported on line 1 with the literal FEC. See Related Links below.


Related Links


Also In This Category


Details
Article has been viewed 17K times.
Last Modified: 3 Months Ago
Options