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  • Schedule 1 question

    Tax newbie here. My wife and I have had pretty simple tax returns (both W-2 employees) up until this year so I decided to try and fill out our 2020 taxes by hand to better understand our current situation. A brief background, we are married filing jointly (MFJ) with one dependent. We both received W-2 income in calendar year 2020 (though my wife only worked in January of 2020 before quitting to stay at home). We will both have 1099 income as well. I cashed out a whole life insurance policy (taken out by my grandparents and handed over to me, ~7k) and prize money from a medical competition (~$400). My wife started a working as a sole proprietor doing photography during the last quarter of 2020 and made ~6500 gross and ~5000 net from her new business. So my question is since we are MFJ do I need to fill out a schedule 1 for both of us or just 1 combined schedule 1? Sorry if this is a newbie question, but couldn't find a definitive answer on here or elsewhere. Thanks for your help.

  • #2
    Just one Schedule 1 for your joint return.

    And you will each have a separate Schedule C for your 1099 work. Schedule C is per taxpayer but is attached to a joint return.

    Now, I think it's silly you're doing your return by hand. I wouldn't try doing a return by hand and I do it for a living. There are lots of inexpensive software options out there.

    Comment


    • #3
      Originally posted by DavidGlennCPA View Post
      Just one Schedule 1 for your joint return.

      And you will each have a separate Schedule C for your 1099 work. Schedule C is per taxpayer but is attached to a joint return.

      Now, I think it's silly you're doing your return by hand. I wouldn't try doing a return by hand and I do it for a living. There are lots of inexpensive software options out there.
      A thorough reading and understanding of each schedule is not the same as manual calculations. The math calculations are less important than understanding the expected outcomes and how they are calculated.

      I do applaud your effort to completely understand your taxes. I think this is a learning style. Now you know.

      Comment


      • #4
        It depends on what you mean "by hand". I do think literally by hand makes no sense. It is too easy to make a simple mistake.

        A a minimum you should use IRS freefilefillableforms.com* to file electronically for free. I hae no sympathy last year for those who still insist on mailing paper returns. In most cases it took several months to process their return.

        At least they do auomatic math and cross form/schedule transcription. *The site is generally not available until mid-late January.

        Personally, I prefer FreeTaxUSA. Even for a reasonably knowledgeable taxpayer. Tax software helps you from failing to address some issue(s).

        One of my favorite sayings; "You don't know what you don't know." Or especially in my case; "You don't know what you don't remember."

        Comment


        • #5
          Originally posted by spiritrider View Post
          It depends on what you mean "by hand". I do think literally by hand makes no sense. It is too easy to make a simple mistake.

          A a minimum you should use IRS freefilefillableforms.com* to file electronically for free. I hae no sympathy last year for those who still insist on mailing paper returns. In most cases it took several months to process their return.

          At least they do auomatic math and cross form/schedule transcription. *The site is generally not available until mid-late January.

          Personally, I prefer FreeTaxUSA. Even for a reasonably knowledgeable taxpayer. Tax software helps you from failing to address some issue(s).

          One of my favorite sayings; "You don't know what you don't know." Or especially in my case; "You don't know what you don't remember."
          Omg we use the same!
          I've never felt so smart....

          Comment


          • #6
            Originally posted by DavidGlennCPA View Post
            Just one Schedule 1 for your joint return.

            And you will each have a separate Schedule C for your 1099 work. Schedule C is per taxpayer but is attached to a joint return.

            Now, I think it's silly you're doing your return by hand. I wouldn't try doing a return by hand and I do it for a living. There are lots of inexpensive software options out there.
            Sorry for the confusion when I said I am filling it out by hand I meant going through our 1040 and associated forms line by line to better understand the tax code and its implications. I have been doing this digitally (PDF) however the calculations have ben manual if that makes sense. I appreciate the heads up on looking into software that will do the manual calculations for me, I will look into this. Any recommendations? I saw freetaxusa and freefilableforms.com listed above. I am fine with software assistance for the math, but what I don't want is a turbotax like format where I answer questions that then translate my answers into a 1040. I have already discovered one big missed tax credit on my 2019 1040 that was a result of this function.

            Comment


            • #7
              Originally posted by PEMdoc View Post

              Sorry for the confusion when I said I am filling it out by hand I meant going through our 1040 and associated forms line by line to better understand the tax code and its implications. I have been doing this digitally (PDF) however the calculations have ben manual if that makes sense. I appreciate the heads up on looking into software that will do the manual calculations for me, I will look into this. Any recommendations? I saw freetaxusa and freefilableforms.com listed above. I am fine with software assistance for the math, but what I don't want is a turbotax like format where I answer questions that then translate my answers into a 1040. I have already discovered one big missed tax credit on my 2019 1040 that was a result of this function.
              I assume you filed an amended return and at least you won't make the same mistake.
              Pick your poison. Data input leads to errors, manually selecting forms can lead to errors of incomplete claiming of credits as well.

              Comment


              • #8
                Originally posted by Tim View Post

                I assume you filed an amended return and at least you won't make the same mistake.
                Pick your poison. Data input leads to errors, manually selecting forms can lead to errors of incomplete claiming of credits as well.
                Just mailed the addended return today actually. Overall this has been a good learning experience that has already saved me money. I plan on completing our 1040, schedule 1,2, SE, and C and then filing with the help of a live CPA to compare the results this year, but I appreciate any tips to ensure my manual version is accurate as possible.

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