Excess monies from foreclosure sale

[poisonlady7563]

thank you so much for how to enter it all.  i will work on it tonight.  

have a whole other issue with our own personal taxes but i think i got that under control, lol.  

[poisonlady7563]

where do i make the adjustment for the 1099-misc.  i put the partial exclusion for the reason but i dont see where i would make the adjustment.  this is the last thing before i get ready to file.  she qualifies to get it all excluded.

[DMarkM1]

Assuming you first have entered the form 1099-Misc in the "Other Common Income" section which reconciles the form 1099-Misc on the tax return, then you'll enter a corresponding negative amount as "Other Reportable Income."

1. Scroll down to "Less Common Income"
2. Start/Revisit "Miscellaneous Income"
3. Start/Revisit "Other Reportable income"
4. "Yes"
5. In the description "Home Sale exclusion"
6. Put in a negative amount representing the exclusion amount

This will subtract the amount from taxable income.  

You can see the forms in desktop  versions using the forms mode or in online versions following these steps.  Check line 8z on Schedule 1 to see the both the positive entry 1099-Misc and the negative entry "Home Sale Exclusion."  

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu