Below, you'll find questions to frequently asked questions about Schedule 1:
How do I enter state or local tax refunds for line 1?
If you know the refund should be taxable:
- Go to Input Return ⮕ Income ⮕ Tax Refund, Unempl. Comp (1099-G)
- Select the State Refund Wksht link in the upper right.
- Enter the amount for Schedule 1, line 1 in the Income tax refunds, if itemized last year [O] field.
If you aren't sure if/how much of the refund is taxable, leave the override fields blank and check the box labeled Itemized in 2021 and enter the Amounts from 2021 Return subsection. will calculate the taxable portion of the refunds received and print the result, if any, on line 1. ProConnectIf you aren't sure if/how much of the refund is taxable, leave the override fields blank and check the box labeled Itemized in 2021 and enter the Amounts from 2021 Return subsection. will calculate the taxable portion of the refunds received and print the result, if any, on line 1.
How do I enter alimony received for line 2a?
- Go to Input Return ⮕ Income ⮕ SS Benefits, Alimony, Misc. Income
- Scroll down to the Alimony and Other Income section.
- Select the Alimony received field to expand it.
- Enter the Alimony received and Date of agreement.
- ProConnectwill only report the alimony on the federal return if the date is before 12/31/2018. However, nonconforming states may still include this as income. If your client received reportable alimony from multiple pre-2019 agreements, the agreement date for which the most alimony was received will print on Schedule 1.
How do I enter ordinary gains or losses for line 4?
Schedule 4, line 1, comes directly from Form 4797, line 18b. If your client disposed of depreciable property, review Form 4797, page 2 for accuracy.
Form 4797, line 22, Depreciation allowed, is automatically calculated for all assets entered under Depreciation. If you need to override this line you must enter the disposition under Dispositions instead.
Why aren't Schedule E losses flowing to line 5?
Some or all K-1 losses may have been limited by the basis, at-risk, or passive rules. The easiest way to check where limitations occurred is by reviewing the K-1 Reconciliation Worksheets. From there, you can determine whether you need to review the Basis Worksheets, Form 6198 for at-risk limits, or Form 8582 for passive activity limits.