Unexplained Other Income on Federal Review Tab of 2024 Tax Breakdown page

[Ben Ploni]

Hi,

We completed our 2024 tax return.  However, at the Federal Review tab, we selected the Detailed Tax Breakdown hyperlink, arrived at the 2024 Tax Breakdown page, and unexpectedly discovered around $15k of "Other Income".

We could not find this number on any of the the W2 or 1099 forms we input into the process, or any numbers that might add up to anything even approximating this total.  We also did not find any suitable numbers on the generated 1040 form, or on any of the schedules we received.  (In particular, although we would expect Schedule 1 to reflect various kinds of other income, these fields were blank.)

What is happening?

Thank you,

Ben

[LindaS5247]

In general, other income would include money or income generated from activities unrelated to business, work, or performing services. This is income not from wages, self-employment, retirement, home or property rentals, or investments. It is income not reported on a W-2 or 1099.

Line 8 of your Schedule 1 would generally display "other income" items. Did you have any stock options, distributions from an HSA or MSA, a Net operating loss carried over, debt cancellations, gambling winnings?

Also, do your items reported on your Form 1040 add up? Where is this other income reported on your 1040? There must be a line that has a greater number in it than what you reported. If your Form 1040 properly reflects what you input into TurboTax maybe the breakdown is incorrect? Maybe share a sanitized copy of this breakdown.
 

Schedule 1 shows other income items in line 8 that flows to line 8 of your Form 1040.

Click here for Publication 4491.

[Ben Ploni]

Hmm.

We looked at it again, and the number is exactly 2k less than line 2a on a 1099-DIV (ie, 17k-ish minus 2k).  So... related to investments?  And where is the missing 2k?

[LindaS5247]

So Box 2a is a Capital Gain distribution. The other $2,000 could be investment related as well. Did you have any other Form(s) 1099 similar to that one? Capital Gains are taxed at a lower rate, so that may be why it is separated out on that TurboTax Breakdown. Capital gains are reported on your Schedule D and that schedule flows to line 7 of your Form 1040.

Click here for Guide to Schedule D: Capital Gains and Losses

[Ben Ploni]

The number on the breakdown is 2k less than the 1099-div.  That is, for some reason, a mysterious 2k is being subtracted from the capital gains, and the result appears as Other Income.  So a mystery offset rather than some other source of capital gains.  And should that appear as Other Income in any case?

[LindaS5247]

Without seeing your breakdown, it is really hard to tell what you are looking at.  Did you have any capital losses?  The breakdown you are speaking of is not transmitted to the IRS.  As long as the amounts are properly reported on your Form 1040 is what matters. From what you have disclosed so far, it does not appear that TurboTax has "misclassified" any income for tax reporting purposes.  What is on line 7 of your Form 1040?

[Ben Ploni]

The same as line 2a on the 1099-div, rather than the Turbotax breakdown page.

[JohnB5677]

Other income is reported on line 8 of your tax return.

• It come from Schedule 1.
• You can view Schedule 1.
• You can preview your tax return by going to:

1. On the menu bar on the left that shows.
2. Select Tax Tools
3. On the drop-down select Tools
   1. Tip: If you don't see the dropdown for Tools,
   2. Minimize the federal and state options using the down arrow.
4. On the popup menu
5. Select View Tax Summary
6. On the left sidebar
7. Select Preview my 1040.
8. Schedules 1,2 & 3 are included if you scroll down past your 1040.
9. To return to the entry screens press Back on the sidebar.

Some key numbers on your 1040 tax return are:

Line 9 - Total Income

Line 11 - AGI

Line 15 - Taxable Income

Line 24 - Total Tax.

Line 25 d - Withholdings.

Line 26 - Estimated tax payments

Line 27 - Earned Income Credit

Line 33 - Payments including Credits.

Line 34 - Overpayments.

Line 37 - Tax owed.