Schedule 1 Lines 24b and 24z
Hello:
It would be great to get FreeTaxUSA to support the following income adjustments on Schedule 1:
Line 24z (This is helpful to do things such as nominee adjustment).
Line 24b (Deductible expenses related to income reported on line 8l from the
rental of personal property engaged in for profit)
Thanks so much!
Answers
-
Hello taxman! We appreciate your suggestions and will pass them on for consideration as we update our software.
Just so you know, certain income adjustments on Line 24z of Schedule 1 are supported, such as the sale of personal items at a loss from Form 1099-K. But you're right—you currently aren't given the option to enter every possible adjustment on Line 24z.
If you have nominee interest or dividends to report, that can actually be done in the software on the 1099-INT or 1099-DIV screens.
For example, let's say you receive a Form 1099-INT reporting income interest, and part or all of the interest income belongs to someone else. You would enter the 1099-INT information as it shows on the form that you received by following this menu path: Income > Common Income > Interest Income (1099-INT). On the 1099-INT screen, you will see a field provided for Nominee Interest directly below Box 12. The amount you enter there for nominee interest will reduce the amount of taxable interest income shown on your return (on Form 1040, Line 2b). It will also result in the nominee distribution showing as an adjustment on Schedule B, which is in line with the IRS instructions for reporting interest received as a nominee.
The same process applies to reporting nominee dividends on the 1099-DIV screen. To do that, you would follow this menu path: Income > Common Income > Dividend Income (1099-DIV).
-
Thanks, Henry! The nominee adjustment I'm looking for is actually for a prize/award 1099-MISC form not DIV nor INT. Would be great if you can add support for that one.
-
That makes sense -- thanks for clarifying what you are needing to report! I'll add that request to our list.
