Reporting Other Income
Other Income is generally taxable income that is considered to be not common income. It is reported on Line 21 of Schedule 1. When you prepare and efile your tax return on eFile.com, we will automatically report your Other Income on the correct form and we will calculate any taxes owed on it.
Self-employment income is not reported as Other Income. Even if you get a 1099-MISC in the mail, make sure you don't confuse self-employment income with Other Income.
Nontaxable income is also not considered Other Income. Income that falls into the category of Other Income is always taxable.
All of the following kinds of income are taxable and will be reported on your Schedule 1, Line 21:
- Alaska Permanent Fund dividends (generally reported on a 1099-MISC) - If your only Other Income is from Alaska Permanent Fund dividends you might qualify for the free eFile.com Federal Edition.
- Alternative Trade Adjustment Assistance (ATAA) or Reemployment Trade Adjustment Assistance (RTAA) payments (generally reported on a 1099-G)
- Barter income (the fair market value of goods or services exchanged by two parties is taxable; both parties should report the full value received from the transaction as other income.)
- Canceled debts (usually reported on a 1099-C)
- Dividends on insurance policies if the amount is more than the total of all premiums you paid
- Gambling winnings, including awards, prizes, jackpots, and contest winnings. Your winnings and any tax withheld may be reported on W-2G, depending on the amount you won and the type of gambling, but the full amount is taxable regardless of whether you receive a W-2G; you may deduct gambling losses up to the amount of your gambling winnings, but you must list all of your winnings on Line 21.
- Hobby income (from an activity not performed for profit; you can deduct hobby expenses up to the amount of your hobby income.)
- Jury duty pay (reported on a 1099-MISC if it totals $600 or more, but any amount is taxable; you can deduct jury duty pay if you have to pay it to your employer.)
- Losses on certain corrective retirement plan distributions of excess deferrals
- Nonbusiness rental income (earned from renting personal property; if you engaged in the rental for profit but were not in the business of renting, it is reported as other income and you can deduct expenses related to this rental.)
- Recapture of a charitable contribution deduction (if the charitable organization disposes of the donated property within 3 years, or due to the contribution of a fractional interest in tangible personal property)
- Recoveries (reimbursements you received for previously deducted expenses, such as medical expenses, employee expenses, and other deductions)
- Taxable distributions from a Coverdell Education Savings Account (ESA) or a qualified tuition program (QTP) (generally reported on a 1099-Q)
- Taxable distributions from a health savings account (HSA) or an Archer MSA. These are generally reported on a 1099-SA; you can deduct qualified contributions to an Archer MSA.
- Taxable HSA distributions deemed to be income because you did not remain an eligible individual during the testing period (generally reported on a 1099-SA)
- Taxable portion of disaster relief payments
Net Operating Loss (NOL)
If you have a net operating loss deduction carried over from a previous year, you can deduct the amount from the other income entered on Line 21 of Schedule 1. EFile.com will fill out the form correctly for you if you have a NOL deduction.
Other Income is reported on Line 21 of Schedule 1. Our price for preparing Form 1040 and any Schedules you need is the lowest around (and the accuracy, ease-of-use, and peace-of-mind are worth it)!