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1040 line 21

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Level 1

I have client with a 1099 his spouse has w2. When I review the return income from 1099 doesn't show. I want to make sure that what is being calculated is correct so that I can give the correct refund to them. Is there something that I'm missing?

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5 Replies 5
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Level 15

Line 21 is now Sch 1, Line 8.  The input is under Income > SS Benefits, Alimony, Misc. Income.  Scroll down to Alimony and Other Income for Other income (Click on button to expand) and enter the amount under the taxpayer's column.

If it is subject to SE-tax, on the other hand, it should be entered under Income > Business Income (Sch C).

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Still an AllStar
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Level 12

More details always helps. Is that 1099-Misc? Box #? The 1099 might be Rent income; or Royalty income. Or 1099-Int? Don't enter it as Other Income if it is a type that has a different specific treatment.

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Level 1

Yes it is 1099 misc. Box #7. That's his source of income. I just want to make sure that the way it generated was correct. As it seems as though the refund is based off of w2 of spouse.

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Level 15

@Kehburton wrote:

As it seems as though the refund is based off of w2 of spouse.


Not sure what you mean by that.  Each additional $ the couple earns would theoretically change the effective tax rate and possible put them in a higher tax bracket.

Assuming no tax was withheld on the 1099-MISC, as would normally be the case, that there was no overpayment applied from 2018, no ES-tax was paid, and taxes were only withheld on the W-2, any refund would definitely have come from the spouse's W-2's FIT (likely as a result of the W-4 having been adjusted to account for dual earner income).

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Still an AllStar
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Level 12

Have you now determined that you need to consider this is business activity, and there needs to be a Sched C for that 1099-Misc person? Remember a 1099-Misc is informational reporting; was he in business and if so, you need to know about all the income and not only the amount someone reported on 1099-Misc. If he made $2 million, but no one paid him $600 or more, there would not be any 1099-Misc income reported. But you would still prepare the business activity as Sched C.

It seems you need to ask this client for more details.

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