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A question about income reporting
#1
Yes, I could call the IRS, but I've already called them twice today and would rather not do it a third time if there's another way. Sad

I got a small check in early 2005 from an insurance company that was for renewal commissions on insurance my late husband had written. They didn't send out a 1099, because the IRS doesn't require one on amounts under $600. Even though the IRS doesn't require a 1099, I'm sure that doesn't mean they don't want the income reported so they can get their tax share.

On what line do I enter this on my 1040A?

(Cut me some slack, please. This is the first income tax return I've had to do myself in over 40 years!)

Thank you!! Smile
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#2
I am pretty sure for income under $600 it is on the honor system. There is a line on your tax return way near the end for "other income" not reported elsewhere.......
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#3
On the "plain" 1040, which is what was used for the 2004 taxes, there is a line for "Other Income", and that's where the accountant reported this income on the 2004 return. The form I'm using this year is the 1040A, which is simpler, and I can't find a catchall spot.

I can't use "Wages, Tips..." because I have no W-2, and every other spot seems inappropriate, too, since I have no documentation. It just doesn't fit anywhere!

I'd like to be "honorable", but they're making this hard! Smile
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#4
can you try the IRS on-line help? (maybe a FAQ)
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#5
Do you have a check stub for that check (or a photocopy of the check)? Just add the check amount into the 'gross income' amount and include a copy of the check/stub with the W-2/1099's.

That's what I would do.

(I'm assuming that the stub has no 'deductions'--that it just reflects what the face amount of the check was).

Hang in there, kiddo; you will survive this chore!
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#6
Speaking on income reporting questions - or writeoffs, as the case may be - anybody renting a room or a house out and have their taxes already figured?

I was renting a portion of the house all year (we'll say 50% for mathematical ease), and then renting the whole house for five months. I lived in the house for seven months. As far as deducting mortgage interest, taxes, and the like, do I calculate it:

(taxes & interest)*(5/12)
+ (taxes & interest)*(50%)*(7/12)
==================================
total deduction


Or can I write it all off on Schedule E since it was rented all year?
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#7
Donkey Hotay Wrote:
-------------------------------------------------------
> Do you have a check stub for that check (or a
> photocopy of the check)? Just add the check
> amount into the 'gross income' amount and include
> a copy of the check/stub with the W-2/1099's.
>

Just to clarify: I do have pension and annuity reported on line 12 (nothing to report on line 7.). You are suggesting I add this "odd" amount into the total on line 12 and include documentation, right? I can do that, although the most recent one is through October, 2005, which was the last time there were any earned commissions posted to the account. (A check is issued only when the amount hits $100.)

Wow, trying to be honest is harder than it sounds when you're dealing with the IRS. Sad

I might have to resort to a third call yet. I didn't find anything in the FAQs, but by now I might just be search challenged.
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#8
Perhaps you need to use the 1040 for that "Other Income" line.

My basic premise with the IRS is that I don't want to do anything that draws attention to me. I obey the law, but I want to do it quietly! That's why I wouldn't add it to line 12 with a copy of the check. It's an odd thing to do, so it might draw the attention of our friendly civil servants!
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#9
Hmm. A quick look through the form 1040A and the instructions for form 1040A didn't reveal anything to do with commissions.

pdfs:
form 1040A: http://www.irs.gov/pub/irs-pdf/f1040a.pdf
instructions for 1040A: http://www.irs.gov/pub/irs-pdf/i1040a.pdf

list of all IRS forms: http://www.irs.gov/formspubs/lists/0,,id=97817,00.html


I would also suggest taking a look at prior year tax returns (2004, 2003) to see how this commission income was reported.

Sorry, I don't have any real answers for you. Call the IRS help line with a clear conscience; I won't begrudge the use of tax dollars for this! Smile
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#10
Thanks, DH! I promise to use your tax dollars wisely. Smile

I might have to go back through the "rules" and see if I can just use the regular 1040. This stupid $125 would be the only reason. Everything else about my return is simple, straightforward, and well documented. If it wasn't for the interest income I have, I could have used the 1040EZ.

By the way, I do have the PDF docs you linked, and I've searched every place I could think of in them to find the answer. In prior years, the return was much more involved, and this kind of income was reported on Line 21, for "Other Income".

You know, I almost forgot about this income, since I never got a 1099. I wish right now I'd hadn't remembered it.

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