Other adjustments to income on Form 1040 in Lacerte
by Intuit• Updated 5 months ago
This article will help you understand and generate less common adjustments on Form 1040, Schedule 1. In previous years, these adjustments didn't have a dedicated line, and were written-in.
The IRS instructions for Form 1040 list the allowable adjustments and where to report them. Follow the steps below to generate the adjustment your client can claim.
Table of contents:
Archer MSA deduction
- Go to Screen 32.2, Medical Savings Accounts (8853).
- Enter a 1 or 2 in 1=self-only coverage, 2=family coverage.
- Enter the Total MSA contributions that you made.
- Enter the health plan's Annual deductible.
Jury duty pay
- Go to Screen 24, Adjustments to Income.
- Scroll down to the Other Adjustments section.
- Enter the amount in Jury duty pay given to employer.
Expenses from rental of personal property (PPR)
- Go to Screen 24, Adjustments to Income.
- Scroll down to the Other Adjustments section.
- Enter the amount in Expenses from the rental of personal property.
Contributions to 501(c)(18)(D) plans
- Go to Screen 10, Wages, Salaries, and Tips.
- Enter the amount in Box 12.
- Select the box 12 code H-Elective deferrals to 501(c)(18)(D).
Excess deductions of 67(e)
- Go to Screen 20.3, Estate or Trust Information (1041 K-1).
- Scroll down to the Lines 9-11 Deductions section.
- Enter the amount in (11a) Excess deductions on termination - Section 67(e) expenses.
For other adjustments:
Follow these steps to generate adjustment codes that don't have a dedicated input field in Lacerte:
- Go to Screen 24, Adjustments to Income.
- Scroll down to the Other Adjustments section.
- Click inside the field labeled Other (Ctrl+E) (Description and Amount).
- Enter the amount and the write-in adjustment code to print on the form.
Why is the Section 461(l) excess business loss shown as positive?
When a negative amount is reported on Form 461, line 16, the instructions state to report that same amount as a positive number on Schedule 1.
How do I generate the Coverdell/ESA Contribution Worksheet?
Since Coverdell contributions are not deductible, the Lacerte Individual Tax program does not have an input field to enter this amount. However, the program generates a worksheet showing the maximum contribution to a Coverdell Educational Savings Account (based on Adjusted Gross Income).
To trigger this worksheet:
- Go to Screen 24, Adjustments to Income
- Select Education Related Adjustments on the section list on the right.
- Enter 1 in the field 1=Coverdell ESA contributions worksheet. (Code 29 for the Taxpayer or Code 79 for the Spouse)
Note: The worksheet is for informational purposes only and will show whether a contribution is allowable based on income limits.
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