Drake Tax - Form 1040 - Line 1

Article #: 17819

Last Updated: November 06, 2024

 

Tags: Drake Tax10173

Drake Tax logo

Note  This article comprises former KB articles 10173 and 17819. It is herein referred to as KB 17819.

In prior years, many of the following items were represented by a literal description beside line 1 on Form 1040 (see below for details). In Drake Tax 2022, additional sections for line 1 have been added as follows:

a Total amount from Form(s) W-2, box 1 (see instructions)

b Household employee wages not reported on Form(s) W-2

c Tip income not reported on line 1a (see instructions)

d Medicaid waiver payments not reported on Form(s) W-2 (see instructions)

e Taxable dependent care benefits from Form 2441, line 26

f Employer-provided adoption benefits from Form 8839, line 29

g Wages from Form 8919, line 6

h Other earned income (see instructions)

i Nontaxable combat pay election (see instructions)

Taxable scholarships not reported on Form W-2 and wages earned while incarcerated are now shown on Schedule 1, line 8 instead of Form 1040, line 1. Nonqualified plans reported on Form W-2, box 11 show on Schedule 1, line 8t, and Form 1040, line 1a shows the difference between box 1 and box 11.

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

    • 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.

  • Wages from Form 8919, line 6

  • Other earned income

  • 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 check boxes 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.

  • Taxable Scholarships & Fellowship Grants

    • 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)

  • Nontaxable combat pay election

  • 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.