Form 1040 Schedule 1 / Form 104PN Line 18 - Other Income?

[JustaAverageJoe]

Hello.

I am filing my taxes and there is one major flaw that I cannot seem to rectify in my filings. I live in NM but worked in CO for the last 2 years, and I filled out everything correctly according to the W-2s I received from my work as I did for 2022, however, I am apparently being marked as having "other income" for CO that the Federal information is denoting to over 5,000. Where is this income coming from? From what I can gather, I am supposed to check Form 1040 Schedule 1 for the information required, which is a combination of what is recorded on Line 1, 2a and 8. Yet I have never seen a 1040, nor received one. When I put 0 and hit continue, everything else on my returns is fine but I am taken back to that issue, which now says Form 104PN Line 18, other federal income must be reported. When I checked the CO Taxation and Revenue site, I gathered that the form is for part-time/non-residents of the state. I have never had to do this before, so what gives? Am I supposed to be mailed this information, perhaps by my employers, or the state? How would I file for this separately from my TurboTax return when I have no clue where to look or what to check? Can someone make this make sense, please? 

[KrisD15]

Your 1040 is your tax return. 

Schedule 1 is part of your tax return. 

Everyone files Form 1040 (which is your tax return) and some tax returns also include Schedule 1, which yours does. 

Wages are reported right on the 1040, but some other income is reported on Schedule A, sometimes added to other things on Schedule A and then transferred to your 1040. 

You have income reported that is something other than wages.

Look at your return and see what that is. 

To View using TurboTax Online:

Select Tax Tools on the left side-bar

Select Tools from that drop-down

Select “View Tax Summary” on the TOOLS CENTER screen

Select “Preview my 1040” which now appears on the left side-bar

Scroll through the return that is in progress, the first pages are the 1040 and next should be Schedule A.

Look at lines 2a and 8 on Schedule 1.

Line 2a is for reporting alimony as income.

Line 8 can be a lot of different things, maybe  a 1099-MISC  or taxable scholarship.

The 104PN is the Colorado Tax Return.

The Colorado return starts with the income you report on your federal return. 

This other income might need to be adjusted if it is not attributed to Colorado. 

If you did not live in Colorado and did not earn this "Other Income" from Colorado Sources, you will make an adjustment for this amount (or part of the amount) on the Colorado return. 

[JustaAverageJoe]

It's making more sense after I looked it over again. I dug up my previous year's returns and I did not realize the tax return was called 1040, so thats on me. What I did figure out is that the number it is saying I made in Colorado, the additional income, might be from a grant. I went to community college in NM last year and got a grant, which when I looked at my 1098T and added that number to the number given to me for the missing Federal income, it adds up. My question is now, why is it trying to say its CO and not NM? I filed the 1098T for this year on the same return, put in all the relevant information. Do I need to do a 1099-MISC for the left over grant money that wasn't used? I do not recall doing that last year, I might have... My old return from last year does line up with what it is asking of me in line 1, 2a and 8 so I believe I am on the right track. 

[KrisD15]

To clarify a little, are you filing both states, Colorado and New Mexico? 

If yes, are you filing as a Part-Year resident for both or resident on one? (Which one?)

Are you a dependent student? If yes, you are a resident of the state in which the Taxpayer who claims you lives. 

Was the Grant listed in Box 5 of the 1098-T and used while you attended school in New Mexico? 

[JustaAverageJoe]

Yes, I am filing for both states. I live in NM. I worked in CO, but I attended community college in NM. The grant I had gotten was from NM, and is listed in Box 5. I have two W-2s for CO, and the 1098T for NM. I am not dependent--I live with roommates, my folks live in FL, just to clarify. I already filled out everything on Turboxtax, the W-2s, and the 1098T, but for whatever reason TurboTax is trying to say the leftover grant money, which was that mystery number, is under CO. That is why I was so confused. Should that "other income" be under NM and not CO? I did not get the grant from CO. Just to try, I put in the number Turboxtax wanted, the little over 5,000 left over, and everything is fine... according to Turboxtax. but I get a weird feeling that I should not file it until I know for certain that is ok to do. Thoughts?