@@teachmepersonalfinance Actually yes, as I have self-employment income (my only source) and it's foreign earned. So I completed Schedule 1 Line 3 with self-employment income and then Line 8D (Foreign Earned Income) as a negative and line 9 was then indeed 0, as was line 10. Gosh, I hope it was right.
I figured this out, as I was having the same issue. You need to add together your business expenses from your Schedule C from lines 28+30 and enter those on Line 44 of your 2555. This make make your Schedule 1 Line 10 equal 0.
Where would I report the recovery of a business expense in 2023 for a business that was closed in 2018? It was a deposit on a license agreement that should have been refunded in 2018, however was refunded in 2023. I deducted the value of the deposit when I terminated business in 2018 as I thought I would never collect it. Would I report that on line 8z?
That seems to be the most logical place to report this. The Schedule 1 instructions state, under Line 8z: Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, general sales taxes, or home mortgage interest. The Schedule 1 instructions then go on to reference the Recoveries portion of IRS Publication 525, which states (under the tax benefit rule): You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year.
I'm a bit confused about NQDC payments. Distributions are reported on Box 1 and 11 on form W2. When I port this over to the 1040 - do I need to subtract out the NQDC payments from the W2 Box 1 and only report the remainder on 1040 line 1A, and then report the W2 box 11 on Schedule 1 line 8t? It seems like yes, otherwise there would be double counting of the NQDC payments.
This is from the Form 1040 instructions: If you received a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457(b) plan and it was reported in box 1 of Form W-2, do not include this amount on Form 1040, line 1a. This amount is reported on Schedule 1, line 8t. So it might be reported on your W-2, but you only report it on Schedule 1, not directly on your Form 1040.
@@teachmepersonalfinance I figured it out. It's included in Box 1 and also in Box 11. You need to subtract out the NQDC payments from box 1 and reported on Schedule 1, Line 8t. So for example, you had $100k salary plus $50k NQDC - it all gets reported in Box 1 W2 as $150,000. On the 1040, however, you'd report the $100k salary on 1040 Line 1A and the $50,000 NQDC on Schedule 1, Line 8t. Definitely confusing, but that's how it works. Same with stock options now. The reporting rules have changed for executive comp.
Hello I have a client that receive 1099 MISC with 94k in box numer 3 ,si my question can I flow this form to schedule C and deduct expenses instead to report this on schedule 1? Customer do fence an installation and repair . Thank you
Here are the form instructions, verbatim: Generally, report this amount on the “Other income” line of Schedule 1 (Form 1040) and identify the payment. The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income. See Pub. 525. If it is trade or business income, report this amount on Schedule C or F (Form 1040). As his tax professional, the IRS will want you to determine that this is trade or business income (which it appears to be). As long as you can truthfully say that this was business income, then you can enter it on Schedule C, and report the appropriate expenses.
Great ! BBecause the company he provide the service did not want change form MISC to NEC His manager told him that with Form MISC will pay less taxes Is that true …?
@@raquelgarcia7261 The type of form isn't as important as the nature of the income. The way you described it, he probably should have gotten a Form 1099-NEC, then run it through Schedule C. He will have to pay self-employment tax, but that's the only way you'd be able to also claim the business tax deductions on Schedule C. You can have one or the other, but not both.
You should report this on Schedule C of your tax return. You would also calculate any Social Security and Medicare tax on Schedule SE. IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: ruclips.net/video/T3KYF24chIg/видео.html IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: ruclips.net/video/SmRTyhd0RnI/видео.html
Hello there, Lets say I worked last year, and did not received any form to report. I only did a part time job and earned 12,500. Can I add that to other income on schedule 1?
Technically, if you did part time work and earned $12,500, then you should have received a copy of IRS Form 1099-NEC (Nonemployee Compensation). This income should be reported on Schedule C, which will then go onto your Form 1099. You should also calculate self-employment tax (Medicare and Social Security), which you would calculate on Schedule SE. Below are links to resources on each of these forms: IRS Form 1099-NEC, Nonemployee Compensation Article: www.teachmepersonalfinance.com/irs-form-1099-nec-instructions/ Video: ruclips.net/video/8wE6sD3TVNE/видео.html IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: ruclips.net/video/T3KYF24chIg/видео.html IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: ruclips.net/video/SmRTyhd0RnI/видео.html
Hello! My employer decided to file me under a 1099-NEC even though I was not an independent contractor for their business and do not own a business of my own. I looked on the IRS website for any information on what to do next and I finally found this small section that said I should file a Schedule 1 form 1040 additional income. However when I try to look up the form on tax websites it doesn’t exist and I’m just frustrated. Is there any advice you could give me? Can you only look up the form on the IRS website?
I'm sorry for the late response...I did not see this previously. If you received 1099-NEC income, you would report it on Schedule C (see links below). Schedule C income reports any income from self-employment, or as an independent contractor (which is technically self-employment). Your Schedule C income (after deductions and adjustments) will then be reported on Line 3 of your Schedule 1. You will probably also have to complete Schedule SE (see links below) to report self-employment income. Technically, you would pay self-employment tax on this. If you want to dispute this, you can file Form SS-8 (see links below), which will allow the IRS to review your status and make a binding determination on whether you are an employee or independent contractor. IRS Schedule C, Profit or Loss from Business Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/ Video: ruclips.net/video/T3KYF24chIg/видео.html IRS Schedule SE, Self-Employment Tax Article: www.teachmepersonalfinance.com/schedule-se-instructions/ Video: ruclips.net/video/SmRTyhd0RnI/видео.html IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes Income Tax Withholding Article: www.teachmepersonalfinance.com/irs-form-ss-8-instructions/ Video: ruclips.net/video/yU2I2woVxSM/видео.html
You would complete the entire Part I of Schedule E, including rental income AND expenses. Once you get to the final rental real estate income or loss figure on Line 26, you would use THAT number for Line 5 of Schedule 1. Here's a link to the article and video we produced on Schedule E for reference: Schedule E, Supplemental Income Article: www.teachmepersonalfinance.com/irs-schedule-e-instructions/ Video: ruclips.net/video/mHH-0QuB3EU/видео.html
The Schedule 1 instructions remain silent on this. However, it seems that you should be able to enter the combined total of your Schedule C income or loss into Line 3 on your Schedule 1.
Line 24b is for personal property, which would consist of things like vehicles, furniture, etc. I believe you're talking about rental real property, like a house or apartment. If that's the case, you would need to complete Schedule E, which covers rental income from real estate. While you're reporting your rents, you can deduct things like HOA fees, all in Part I of Schedule E. IRS Schedule E, Supplemental Income Article: www.teachmepersonalfinance.com/irs-schedule-e-instructions/ Video: ruclips.net/video/mHH-0QuB3EU/видео.html
If you're asking whether a non-citizen can complete a tax return for American taxpayers, like in tax return preparation services, I believe the answer is 'Yes.' If you're asking a different question, could you rephrase it so I can more clearly understand what you're trying to ask?
This is the most helpful video. Thank you for breaking down each section. I feel empowered to file my own taxes next year.
My line 9 is a negative number because foreign income is my only income. Do I just put 0 on line 9? Thank you!!
Is there a reason you're completing Schedule 1?
@@teachmepersonalfinance ah you are absolutely right! I don't need it!
@@teachmepersonalfinance Actually yes, as I have self-employment income (my only source) and it's foreign earned. So I completed Schedule 1 Line 3 with self-employment income and then Line 8D (Foreign Earned Income) as a negative and line 9 was then indeed 0, as was line 10. Gosh, I hope it was right.
I figured this out, as I was having the same issue. You need to add together your business expenses from your Schedule C from lines 28+30 and enter those on Line 44 of your 2555. This make make your Schedule 1 Line 10 equal 0.
Where would I report the recovery of a business expense in 2023 for a business that was closed in 2018? It was a deposit on a license agreement that should have been refunded in 2018, however was refunded in 2023. I deducted the value of the deposit when I terminated business in 2018 as I thought I would never collect it. Would I report that on line 8z?
That seems to be the most logical place to report this. The Schedule 1 instructions state, under Line 8z:
Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, general sales taxes, or home mortgage interest.
The Schedule 1 instructions then go on to reference the Recoveries portion of IRS Publication 525, which states (under the tax benefit rule):
You must include a recovery in your income in the year you receive it up to the amount by which the deduction or credit you took for the recovered amount reduced your tax in the earlier year. For this purpose, any increase to an amount carried over to the current year that resulted from the deduction or credit is considered to have reduced your tax in the earlier year.
I'm a bit confused about NQDC payments. Distributions are reported on Box 1 and 11 on form W2. When I port this over to the 1040 - do I need to subtract out the NQDC payments from the W2 Box 1 and only report the remainder on 1040 line 1A, and then report the W2 box 11 on Schedule 1 line 8t? It seems like yes, otherwise there would be double counting of the NQDC payments.
This is from the Form 1040 instructions:
If you received a pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457(b) plan and it was reported in box 1 of Form W-2, do not include this amount on Form 1040, line 1a. This amount is reported on Schedule 1, line 8t.
So it might be reported on your W-2, but you only report it on Schedule 1, not directly on your Form 1040.
@@teachmepersonalfinance I figured it out. It's included in Box 1 and also in Box 11. You need to subtract out the NQDC payments from box 1 and reported on Schedule 1, Line 8t. So for example, you had $100k salary plus $50k NQDC - it all gets reported in Box 1 W2 as $150,000. On the 1040, however, you'd report the $100k salary on 1040 Line 1A and the $50,000 NQDC on Schedule 1, Line 8t. Definitely confusing, but that's how it works. Same with stock options now. The reporting rules have changed for executive comp.
Hello
I have a client that receive 1099 MISC with 94k in box numer 3 ,si my question can I flow this form to schedule C and deduct expenses instead to report this on schedule 1?
Customer do fence an installation and repair .
Thank you
Here are the form instructions, verbatim:
Generally, report this amount on the “Other income” line of Schedule 1 (Form 1040) and identify the payment. The amount shown may be payments received as the beneficiary of a deceased employee, prizes, awards, taxable damages, Indian gaming profits, or other taxable income. See Pub. 525. If it is trade or business income, report this amount on Schedule C or F (Form 1040).
As his tax professional, the IRS will want you to determine that this is trade or business income (which it appears to be). As long as you can truthfully say that this was business income, then you can enter it on Schedule C, and report the appropriate expenses.
Great ! BBecause the company he provide the service did not want change form MISC to NEC
His manager told him that with Form MISC will pay less taxes
Is that true …?
@@raquelgarcia7261 The type of form isn't as important as the nature of the income. The way you described it, he probably should have gotten a Form 1099-NEC, then run it through Schedule C.
He will have to pay self-employment tax, but that's the only way you'd be able to also claim the business tax deductions on Schedule C. You can have one or the other, but not both.
I got a 1099 nec form in the mail with $660 non employee compensation and I have no idea what to do with it any help?
You should report this on Schedule C of your tax return. You would also calculate any Social Security and Medicare tax on Schedule SE.
IRS Schedule C, Profit or Loss from Business
Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/
Video: ruclips.net/video/T3KYF24chIg/видео.html
IRS Schedule SE, Self-Employment Tax
Article: www.teachmepersonalfinance.com/schedule-se-instructions/
Video: ruclips.net/video/SmRTyhd0RnI/видео.html
Hello there,
Lets say I worked last year, and did not received any form to report. I only did a part time job and earned 12,500. Can I add that to other income on schedule 1?
Technically, if you did part time work and earned $12,500, then you should have received a copy of IRS Form 1099-NEC (Nonemployee Compensation). This income should be reported on Schedule C, which will then go onto your Form 1099. You should also calculate self-employment tax (Medicare and Social Security), which you would calculate on Schedule SE.
Below are links to resources on each of these forms:
IRS Form 1099-NEC, Nonemployee Compensation
Article: www.teachmepersonalfinance.com/irs-form-1099-nec-instructions/
Video: ruclips.net/video/8wE6sD3TVNE/видео.html
IRS Schedule C, Profit or Loss from Business
Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/
Video: ruclips.net/video/T3KYF24chIg/видео.html
IRS Schedule SE, Self-Employment Tax
Article: www.teachmepersonalfinance.com/schedule-se-instructions/
Video: ruclips.net/video/SmRTyhd0RnI/видео.html
Where would i enter for the employee housing of 6,600 as a loss
Hello! My employer decided to file me under a 1099-NEC even though I was not an independent contractor for their business and do not own a business of my own. I looked on the IRS website for any information on what to do next and I finally found this small section that said I should file a Schedule 1 form 1040 additional income. However when I try to look up the form on tax websites it doesn’t exist and I’m just frustrated. Is there any advice you could give me? Can you only look up the form on the IRS website?
I'm sorry for the late response...I did not see this previously.
If you received 1099-NEC income, you would report it on Schedule C (see links below). Schedule C income reports any income from self-employment, or as an independent contractor (which is technically self-employment). Your Schedule C income (after deductions and adjustments) will then be reported on Line 3 of your Schedule 1.
You will probably also have to complete Schedule SE (see links below) to report self-employment income. Technically, you would pay self-employment tax on this. If you want to dispute this, you can file Form SS-8 (see links below), which will allow the IRS to review your status and make a binding determination on whether you are an employee or independent contractor.
IRS Schedule C, Profit or Loss from Business
Article: www.teachmepersonalfinance.com/irs-schedule-c-instructions/
Video: ruclips.net/video/T3KYF24chIg/видео.html
IRS Schedule SE, Self-Employment Tax
Article: www.teachmepersonalfinance.com/schedule-se-instructions/
Video: ruclips.net/video/SmRTyhd0RnI/видео.html
IRS Form SS-8, Determination of Worker Status for Purposes of Federal Employment Taxes Income Tax Withholding
Article: www.teachmepersonalfinance.com/irs-form-ss-8-instructions/
Video: ruclips.net/video/yU2I2woVxSM/видео.html
Would i use rents received from the schedule E for for line 5 on the schedule 1?
You would complete the entire Part I of Schedule E, including rental income AND expenses. Once you get to the final rental real estate income or loss figure on Line 26, you would use THAT number for Line 5 of Schedule 1.
Here's a link to the article and video we produced on Schedule E for reference:
Schedule E, Supplemental Income
Article: www.teachmepersonalfinance.com/irs-schedule-e-instructions/
Video: ruclips.net/video/mHH-0QuB3EU/видео.html
I have a problem , I have 3 schedule Cs from three different business, do I need 3 schedule 1 to report on 1040?
The Schedule 1 instructions remain silent on this. However, it seems that you should be able to enter the combined total of your Schedule C income or loss into Line 3 on your Schedule 1.
can I enter HOA fees for rental property on Line 24b?
Line 24b is for personal property, which would consist of things like vehicles, furniture, etc. I believe you're talking about rental real property, like a house or apartment.
If that's the case, you would need to complete Schedule E, which covers rental income from real estate. While you're reporting your rents, you can deduct things like HOA fees, all in Part I of Schedule E.
IRS Schedule E, Supplemental Income
Article: www.teachmepersonalfinance.com/irs-schedule-e-instructions/
Video: ruclips.net/video/mHH-0QuB3EU/видео.html
Could a non american citizen fill up tax return form from outside of america for tax payers ?
If you're asking whether a non-citizen can complete a tax return for American taxpayers, like in tax return preparation services, I believe the answer is 'Yes.' If you're asking a different question, could you rephrase it so I can more clearly understand what you're trying to ask?