So, now we must discuss the most important part of a 1040. Line 1. Yes, the dreaded line 1. Wages, salaries, tips, etc. What’s etc. anyway? Really? We as citizens must decipher what etc. is? Well, if you want a basic summary of what all that means, here ya’ go.
If you earned a dollar, in some way or some format, the IRS probably wants a portion of it in taxes. There’s just no getting around it. Some examples of what should go on Line 1 is the most popular, your W-2 wages. You went to work every day as an employee, you got a paycheck every week or every other week, then you should be getting a W-2 summarizing your yearly wages along with the taxes you paid.
The wage portion you earned is entered here on line 1. But there are other forms of income that also belong on this line. Tips are one. Yes, those tips you earned as a waitress or waiter, delivery driver, etc. (yes etc. lol) must be claimed here as well. Medicaid waiver payments are another. Wages you earned as a household employee must be included as well. Other possible inclusions are employer-provided adoption benefits, disability pensions if you’ve not yet reached the minimum retirement age set by your employer, excess elective deferrals, and so on.
If you are not sure if you should include a form of income, then research the IRS website to verify, or contact a trusting Tax Professional to guide you in the right direction.
Schedule your next tax appointment with Angie Love’s Taxes.
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