There are a number of different kinds of income that get added into the wages on your Form 1040, but do not come from W-2 box 1. Many, but not all, of these types of added wage income are indicated by an abbreviation and amount shown to the left of the total wages on the tax return. Do you have an abbreviation to the left of the amount of wages? The most common of these are the following.
- SCH - Taxable scholarship income (Is there scholarship income in box 5 of your 1098-T that is more than the tuition in box 1?)
- HSH - Wages earned as a household employee but not reported on a W-2
- DCB - Taxable dependent care benefits from W-2 box 10
Some other types of income that might be added into your wages, without an abbreviation, are the following.
- Tips that you did not report to your employer.
- Allocated tips from W-2 box 8.
- Disability payments from a pension plan from Form 1099-R with distribution code 3 in box 7, if you are below the minimum retirement age for the plan.
- A corrective distribution or return of excess contributions from a retirement plan, from Form 1099-R with distribution code 8 in box 7.
If you are using the CD or download TurboTax software, go to forms mode and open the Wages, Salaries, & Tips Worksheet. It will show you everything that is included in the wages on your tax return, and where it comes from, including all of the possibilities mentioned above. In TurboTax Online the only way to see the worksheet is to print your tax return with all forms and worksheets.
