Below is a long list of other things that are included in line 1
BUT...most commonly it's either Scholarships where all eligible education expenses have not bee used up... or.....Certain 1099-R forms? (depends on the box 7 codes)....But there's other stuff too..
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......the program will include the taxable amount(s) on line 1:
* tip income that was not reported to your employer must be entered on Form 4137 Tip Information Smart Worksheet.
* scholarship and fellowship grants not reported on a W-2 should be entered on the Wages, Salaries & Tips Worksheet. "SCH" and the amount will print next to line 1.
* If you received wages less than $2,100 as a household employee and didn't receive a W-2, enter those wages on the Wages, Salaries & Tips Worksheet. "HSH" and the amount will print next to line 1.
* dependent care benefits should be entered in box 10 of Form W-2. "DCB" will print next to line 1 if any of the benefit is taxable.
* employer provided adoption benefits should be entered in Box 12 of Form W-2 with code "T". "AB", "PYAB", or "SNE" will print next to line 1 if any of the benefit is taxable (AB) or excluded (PYAB or SNE). "SNE" will print when excluded adoption benefits exceed employer provided benefits for the adoption of a child with special needs.
* a disability pension you received before reaching the minimum retirement age should be entered on Form 1099-R with code "3" in box 7 and the box checked "Yes" on line E.
* any qualified insurance premiums that have been subtracted from an eligible retired public safety officer's distribution who is retired on disability and the disability pension is reported as wages should be entered on the Form 1099-R replica in the insurance section on the "Amount of qualified insurance premiums paid subtracted from an eligible retired public safety officer's distribution" line. "PSO" and the related qualified insurance premium amount prints next to line 1 when the amount on line 1 is reduced by the qualified insurance premiums.
* corrective distributions of excess salary deferrals, or excess contributions to a retirement plan should be entered on Form 1099-R with code "8" in box 7.
* If you received a clergy housing allowance, complete lines 7a and 7b of Form W-2 (page 2) Additional Wage and Tax Information. If line 7a is greater than line 7b, "EXCESS ALLOWANCE" and the amount print next to line 1 on Form 1040/1040-SR Worksheet.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
