W2 and 1099

[smccaw]

I did my taxes and reported all my wages. However my tax return show I made lower than what my 1099's and W2's reflect. Why would that be?

[Vanessa A]

Where do you see this number?

If you are looking at your taxable income this is calculated by subtracting either your standard deduction or itemized deduction from the income you enter.  So, if you are single and took the standard deduction and you entered $20,000 from your 1099's and $30,000 from your W-2's. your income before your Standard or Itemized Deduction would be $50,000.  Then you would subtract $14,600 from that and see and AGI of $35,400.

It is also could be the difference of what type of income was on the 1099.  For example, if it was a SSA-1099, the most of that that would be taxable would be 85%. If it was non-taxable interest, this would not be included either. 

One other option would be above the line deductions.  This works similar to the Standard Deduction and will lower your AGI which means you have lower taxable income.  

If you look at your form 1040, here is where you may see differences:

• Line 1i- if you have non taxable combat pay
• Lines 2-6, column a would be your entry and column b is the taxable amount
• line 9 is your total income. 
• Line 11 is  your AGI which is line 11 minus above the line deductions that come from Schedule 1
• Line 15 is your taxable income.  This will almost always be lower than line 9.

Social Security Benefits Taxes

Taxable Income vs. Nontaxable Income: What You Should Know

To see your 1040 switch to forms mode in the desktop version or follow the instructions below in the Online version

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools 
   
2. On the drop-down select Tools 
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select Preview my 1040 

[smccaw]

Thank you!  I figured it out.  I needed to add my schedule C to my 1040 to get my actual income amount.  Thank you for your help.