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bfloats

Question

How do I enter something on Schedule I, Line 24z?

Forum|Forum|4 years ago
January 26, 2022
7 replies
0 views

It is Adjustments to Income (Other Adjustments)

TurboTax Premier Online

DaveF1006

It depends. To clarify, what is it you are trying to enter. You will need to do this in the program because Schedule 1 does not allow you to enter anything directly on the form

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bfloatsAuthor

Thanks for the response! I received a 1099-K for PayPal withdrawals (really just a return of capital and not net taxable income). I want to report the 1099-K amount on my return so that it doesn't raise any red flags with the IRS, but it's not really net income, so I was trying to think of the best way to report it as gross income but then cancel it out. My best guess was to put "Gross PayPal Receipts" on Schedule 1, Line 8z. And then "Gross PayPal Disbursements" on Schedule 1, Line 24z. I found out where to enter amounts on Schedule 1, Line 8z, but as far as I can tell there is no way to enter amounts on Schedule, Line 24z.

DaveF1006

To enter:

Go to wages and income>less common income.
Go to Miscellaneous Income, 1099-A, 1099-C
Go to Other reportable income
In the description field, enter 1099k income. Pay pal receipts for return of capital. put in the amount of the 1099K.
After entering this, there will be a summary page that appears. Select add another miscellaneous income item.
Here put in description 1099K is for return of my investment. There was no income earned and enter a negative number for the amount of the 1099K.
What this does is show the positive and negative amounts on line 8Z, which cancels out the income.
Be specific in your description fields for both of the miscellaneous income entries so the IRS will see how you justify this isn't taxable income. You will to make clear that this is for return of your capital and none of it is pay pal income.

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guestson

I spoke to an IRS telephone representative. I am explicitly to put the amount of my ATM surcharges on Form 1099-MISC on both lines 8z (as it appears in Box 3) and in lines 24z of Form 1 in order to have the bank changes not considered income. This is per the IRS Publication 525. No trickery like putting this number in line 8z as a negative will suffice. Again, per the IRS.

How does one enter something on Schedule 1, Line 24 using TurboTax?

LoganathanB

Open your tax return

Go to wages and income

Go down to less common income

Click on the item you want to enter

Enter the details

Click on the item you want to enter

Click on the link for more information

Schedule 1

bfloatsAuthor

This will allow you to enter something on Line 8z. The question is how to enter a deduction on Line 24z. As other users have stated, that is how you are supposed to display your non-taxable amount (instead of entering it as negative income on Line 8z of Schedule 1)

ANGRY JANE

As a long time user of Turbo Tax, I am completely frustrated. I have a perfectly legal reason to adjust my income downward as a graduate student (our University pay is handled oddly). The IRS provided Schedule 1, Line 24z, to report this adjustment, and Turbo Tax prevents usage of this line. Guess it's time to find a new tax program.

John-S II

This issue is also a problem for CA residents who received a 1099-MISC from the State of California for the inflation relief payment in 2022 - called the Middle Class Tax Tax Refund. CA FTB said the refund is not subject to CA tax but issued a 1099-MISC anyway because they said they weren't sure whether it was subject to federal taxes. So now taxpayers must report that 1099-MISC as income, but those of us who believe that the payment is not subject to federal tax because of IRC section 139 (disaster payments) have nowhere in TurboTax to put the adjustment.

Critter-3

Assuming your question is about the CA Middle Class Tax Refund (MCTR) you are correct the amount is non-taxable. You probably received a form 1099-Misc which is how you enter the amount. The latest update in TurboTax should correctly handle the MCTR payment.

Go back to the "Wages and Income" section.
"Edit" the 1099-Misc
"Delete" the form entry
Click "Done"
On the summary page scroll down to "Other Common Income"
"Revisit" the 1099-Misc topic
Re-enter the form information
You will arrive at a page titled "Does one of these uncommon situations apply?"
Click the button "This was a California Middle Class Tax Refund (MCTR)
Finish the interview section.

This will automatically exclude this amount from federal income. On the federal tax return, the MCTR payment will reflect as a positive amount, as well as a separate negative amount.

Both the positive and negative amounts will show on line 8z on the Schedule 1. You can see these entries in the forms view for desktop versions or in the online versions by following these steps:

"Tax Tools" in the left hand menu
"Tools"
"View Tax Summary" in the main screen
"Preview my 1040" in the left hand menu

The income will no longer be in the Federal Adjusted Gross Income amount and therefore will not transfer to the CA tax return either.

ssdc

Can anyone escalate this to Intuit to try to get the ability to add an entry to Schedule 1 line 24z (which then carries through to Form 1040 line 10) for this filing season? Or are we just going to be out of luck?

Anonymous_

Employee

@ssdc wrote:

Can anyone escalate this to Intuit to try to get the ability to add an entry to Schedule 1 line 24z (which then carries through to Form 1040 line 10) for this filing season?

We are doing our best, I can promise you that.

tmunoz

If you have received a Form 1099-K which has amounts that are not income and not self-employment, you should enter the Form 1099-K as it is received, in the Other Common Income section, so that it matches what was reported to the IRS.

In addition, make an adjustment to show the negative amount which should be subtracted.
For instance:
1099-K personal transactions $ -100
1099-K sale of personal items at loss $ -200

To enter this, go to:

Wages and Income
Scroll down to Less Common Income and select Show More
Scroll down to the last entry and select Start or Review for Miscellaneous Income, 1099-A, 1099-C
Scroll to the last entry, Other reportable income and click on Start
Any Other Taxable Income? Select Yes
Then enter 1099-K, the reason for the adjustment, and the amount, as below, and Continue

This adjustment entry will appear on the return on Form 1040, Schedule 1 Part II – Line 8z, Other Adjustments, which follows the directions from the IRS on their website. See Question 8 for an example.

It should show like this on your Schedule 1

[Edited 02/02/23|711:39 am PST]
@ssdc

jerry2ab

You can not access this line Sch 1 part 2 line 24 z in this program . You can only print the the forms and fill in manually and mail per post office . This problem exists longer . Why dose Turbo Tax not remedy this problem ? An option is to find a Tax program that lets you access this line. Using Sch 1 part 1 line 8 may not be an option and isn´t an option when filing Social Security payments . Turbo Tax please fix this problem . Thanks

Anonymous_

Employee

@jerry2ab wrote:

]Turbo Tax please fix this problem.

The developers are working on this issue.

reaboys

yeah, sure, after months of knowing the problem

roni1

This is a MESS. I'm in the same boat. My case is a bit different, PayPal sent me a 1099-K for a 2021 sale I had already paid taxes for back in 2022. But I only transferred the funds to my bank account in 2022 and that triggered a 1099-K. Since I already paid tax on this in a prior year I need to cancel out the 1099-K with line 24z AS PER THE IRS.

Add this to the long list of unsupported stuff by TurboTax...