Episode 246

full
Published on:

8th Mar 2023

Uncorking Your Income: Making Adjustments on Schedule 1

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

Don't miss out on valuable insights and empowering financial advice! Subscribe to "Money Roots" today to embark on a journey of financial growth and empowerment. Join host Amy Irvine as she simplifies personal finance, making it accessible to everyone, from beginners to seasoned experts. By subscribing, you'll stay up-to-date with each episode, gaining access to practical tips, inspiring stories, and expert insights that will help you take control of your financial future. Whether you're looking to budget smarter, invest wisely, or secure your retirement, "Money Roots" has something for everyone. Subscribe now and start nurturing your financial well-being!

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:

  1. 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
  2. Pudding River Winery: https://www.puddingriverwinecellars.com/
  3. Oregon Wine Board: https://industry.oregonwine.org/
  4. 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.

Next Episode All Episodes Previous Episode

Listen for free

Show artwork for Money Roots

About the Podcast

Money Roots
Money Roots with Amy Irvine
Welcome to "Money Roots," the podcast where personal finance becomes personal. Join host Amy Irvine, CEO of Rooted Planning Group, as she demystifies the world of finance and makes it approachable for everyone, from beginners to financial experts.

In each episode, Amy and her guests dig deep into the financial soil, planting the seeds of financial knowledge and helping you nurture your financial future. Whether you're looking to build a solid budget, invest wisely, or plan for retirement, "Money Roots" has you covered.

Get ready to explore practical advice, inspiring stories, and expert insights that will empower you to take control of your financial destiny. It's time to grow your money roots and thrive financially!

Subscribe to "Money Roots" now and join Amy on this exciting journey to financial empowerment. Let's put down some roots and flourish together.

About your host

Profile picture for Amy Irvine

Amy Irvine

As a kid, I always liked numbers. I would spend hours creating math problems and solutions. Whenever I wanted to play math teacher, my brother was forced to be my student! Given my love of facts and figures, it’s really no surprise that I chose a career where I work with numbers.

I believe that you can use your dollars and cents to create and live a meaningful life unique to your own dreams and desires. I started Rooted Planning Group because I wanted to offer financial PLANNING services. Our profession has a tendency to focus on “assets under management,” but I wanted to focus on the journey of your life (what I refer to in the podcast as your financial “vineyard”). I truly believe that, like wine, life and finances have different palettes that should be celebrated and not judged.

My journey as a business owner was not a direct path; it’s more of a long and winding road. Over the course of the past 30 years, I’ve worked in various financial services positions, but I’m most proud of the ensemble of women that I’ve brought together at Rooted Planning Group.

I am the author of Uncork Your Finances and the podcast host of Money Roots.

I also co-founded the Southern Tier Women's Financial Conference in 2014, an annual event dedicated to collaboration, networking, and financial education for women.