1139b volunteer fire/EMS exclusion

[spark99e]

I'm trying to enter the volunteer fire/Ems exclusion so it shows up on schedule 1 and is subtracted on the 1040 as an adjustment to income.   Does anyone know step by step on how to enter that $600 exclusion?  Thanks.

[PattiF]

The first $600 of the volunteer incentive is exempt from federal income tax as you know. The steps to enter the $600 exclusion depend on how the income was reported to you. It may be on a 1099-MISC or 1099-NEC, or on a W-2. 

The steps to enter the income that can be excluded from income are in this TurboTax help article. Choose how the income is reported, and follow the steps.

[spark99e]

The thing is, it was neither provided for on the W-2 nor any tax form.  I contacted the employer and they were not aware of the passing of this exemption so it was not accounted for in 2021.  So, I have to exclude it manually which can be done on Schedule 1 under "Other Adjustments" line 24.z.  But my issue is that I can't see to manually enter this exclusion with an explanation so that it appears on the 1040.  I have contacted Support but they have been of no help.

[DawnC]

The income that’s eligible for this exclusion won’t usually be included on a Form W-2, 1099-MISC, or 1099-NEC.   If that’s the case for you, there’s no need to report the $600 (or less) on your personal income tax return.

If your eligible incentive amount is reported to you on a W-2 or 1099, you can follow the steps below to claim the exclusion in TurboTax.   If there is no tax incentive pay on your W-2, you have nothing to deduct.  

The income is reported on a 1099-MISC or 1099-NEC

The income is reported on a W-2

[spark99e]

Let me explain more, the employer did not remove the $600.  The total income on the W2 in the entire amount I was paid for the year.  I would like to have the $600 exclusion as this law has provided me with that exclusion.  I need to enter it manually so that I may use it.  I confirmed with the the employer's payroll department that they NEVER excluded it from the income on the W-2.   I just would like to know how to enter the $600 exclusion into the adjustments manually as the program does not ask for this specifically. 

[DawnC]

If your incentive income is reported to you on a W-2, it’s best to request a corrected W-2 from your employer. W-2 earnings are subject to certain payroll taxes that can’t be refunded on a normal income tax return.

If you’re unable to get a corrected W-2, you can claim the exclusion by reporting the eligible amount (up to $600) as “other income”. Enter the income as a negative amount with the description “IRC 139B exclusion for volunteer responders”. To navigate to this area in TurboTax:

1. Select Search from the menu
2. Type other reportable income and hit Enter
3. Select Jump to other reportable income
4. On the Other Wages Received screen, select Yes, then Continue
5. Proceed until the Any Other Earned Income screen. Select Yes, then Continue
6. On the Enter Source of Other Earned Income screen, select Other, then Continue
7. Enter the negative amount and description, then select Done

[spark99e]

Thank you.  I saw this explanation earlier and tried to do just that.  I added it in as a negative to other income but when I print out the 1040 and supporting documents, it removes it from Line 1 of the 1040 with no explanation.  I don't like this option as it does not inform the IRS why Line 1 of the 1040 does not match the total of Box 1 of the W-2.  That is why I am trying to find a way to add it as an adjustment to income with an explanation.  It will show up then on Schedule 1 and deduct it on Line 10 of the 1040.

[KrisD15]

The answer above will subtract the income from wages (line1)

The steps below will put the subtraction on Schedule 1.

Your state tax may be adjusted (when you do your state tax return) because of the lowered Adjusted Gross Income on the Federal return. 

Your FICA tax will be reflected on the amount reported on your W2 Box 3. 

 Go back to the Wages & Income section

Scroll down to the VERY LAST option "Less Common Income" and click Show more

On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click START

Now scroll down to the VERY LAST option "Other reportable income" and click Start

Select YES on the "Any Other Taxable Income?" screen 

Type "1139b volunteer fire/EMS exclusion" or whatever you think will make sense to the IRS and the amount as a NEGATIVE (put - in front of the number) 

This NEGATIVE number should show on your Schedule 1 and 1040 line 8