Rental Income on Form 1040 Schedule 1 Lines 8l and 24b

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taxman
taxman Member Posts: 4 Newcomer

Hello:

Thanks for the efforts towards this smooth software. I would like to request a feature that is not available at the moment. The IRS allows individuals who obtain property rental income that is NOT real estate to report in one of 2 ways:

  1. On Schedule C (if they are in the business of renting), OR
  2. On Schedule 1 - Lines 8l and 24b (if they are NOT in the business of renting).

Please see the link below for the exact details.

https://www.irs.gov/taxtopics/tc414

It seems that only the method via Schedule C is supported by FreeTaxUSA.

I would appreciate it if you can update the software to allow the second method as well (report on schedule 1 - Lines 8l and 24b).

PS: I understand that real estate can be reported on Schedule E, but that is not the subject of this thread.

Thanks so much and hope to see this feature soon! :')

Best Answer

  • Henry
    Henry FreeTaxUSA Agent Posts: 86
    edited January 19 Answer ✓
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    Hi taxman! Thanks for your feedback! We are always looking for ways to improve our software, and we do update it every year to cover more situations.

    There is currently a way to report nonbusiness rental income on Schedule 1. In our software, that is done by entering a 1099-MISC record. Did you happen to receive a 1099-MISC form reporting this income?

    To get that rental income to generate on Line 8l of Schedule 1, you would select Income > Business Income > 1099-NEC/1099-MISC from the menu bar. If you enter a 1099-MISC with rental income in Box 1, you will be asked to indicate what type of income it is, and 'Nonbusiness Rental Income' is one of the options.

    Unfortunately, reporting deductible expenses related to your rental income (on Line 24b of Schedule 1) is not currently supported by our software. I will definitely pass on your request for future consideration though.

Answers

  • taxman
    taxman Member Posts: 4 Newcomer
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    Thanks, Henry! Worked for line 8l.

    Would really appreciate it if you can get 24b to work before April 15. That would be super helpful instead of having to edit & mail hard-copy!