In this episode of Wine and Dime, Amy Irvine is back to talk about the wonderful and illustrious 1040! Amy dives into Schedule 1, which is actually an extension of the front side of the 1040. Schedule 1 is all about additional income and adjustments to income.
What you'll learn:
Different income items included in Schedule 1
Form 4797 and Form 2550
Types of income need to be reported on Schedule 1
Pudding River Pinot Noir for International Women's Day
Remember, just like a good bottle of wine, the Wine and Dime Podcast gets better with time. So don't forget to rate and subscribe to our show, where we blend the flavors of wine and personal finance to help you achieve financial freedom!
If you have any questions that you would like answered on the show, feel free to email us at info@rootedpg.com
Or visit us at www.rootedpg.com/podcasts for full show notes and links!
I. Additional Income Items
Taxable refunds, credits, and offsets to state and local income taxes
Alimony payments received (before or after 2019)
Business income or loss (covered in more detail in part five)
Other gains or losses (reported on Form 4797)
Rental income (reported on Schedule E)
Farm income or loss (reported on Schedule F)
Unemployment compensation
Any other income received (e.g. net operating loss, gambling, foreign earned income exclusion)
Income from other resources (various forms may be required)
Alaska permanent fund dividends
Jury duty pay
Prizes or awards
II. Adjustments to Income
Educator expenses
Certain business expenses of reservists, performing artists, and fee-basis government officials.
Health savings account (HSA) contributions
Moving expenses
Deductible part of self-employment tax
Self-employed SEP, SIMPLE, and qualified plans
Self-employed health insurance deduction
Penalty on early withdrawal of savings
Alimony paid (before or after 2019)
IRA contributions
Student loan interest deduction
Tuition and fees deduction
Conclusion:
Schedule 1 is an important part of the 1040 tax form that covers additional income and adjustments to income.
By understanding what needs to be reported and deducted, taxpayers can ensure they are accurately completing their tax return.
Pudding River Winery's Pinot Noir:
From the Willamette Valley in Oregon, Pudding River Winery's Pinot Noir is a complex and elegant wine with a deep ruby color and aromas of cherry, raspberry, and vanilla.
On the palate, it has a smooth and silky texture with flavors of red fruit, spice, and a hint of earthiness.
This wine pairs well with grilled salmon, roasted duck, or mushroom risotto.
It has received high ratings from wine critics and is a great choice for those looking to explore the world of Oregon Pinot Noir.
Links discussed in this episode:
The IRS website provides detailed instructions on how to fill out Schedule 1, including a line-by-line breakdown: https://www.irs.gov/forms-pubs/about-schedule-1-form-1040
Pudding River Winery: https://www.puddingriverwinecellars.com/
Oregon Wine Board: https://industry.oregonwine.org/
Willamette Valley: https://willamettewines.com/
This episode is brought to you by Rooted Planning Group. Rooted Planning Group is a fee-only financial planning firm that specializes in working with women in their 30s and 40s who want to take control of their finances and plan for the future. Whether you're just starting out or you're looking to make a big change, Rooted Planning Group can help. Visit www.rootedpg.com to learn more.