Thanks re in on 21 and out on 36

[Kram BergGold]

Client got a $5,000, 1099 Other Income for a scholarship. I had to put it on form 1040, line 21. Thanks to whoever it was who suggested using line 36 to make it go away as the $5,000 was used to pay tuition.

[FEDUKE404]

Line 36 Form 1040

Client got a $5,000, 1099 Other Income for a scholarship. I had to put it on form 1040, line 21. Thanks to whoever it was who suggested using line 36 to make it go away as the $5,000 was used to pay tuition.

Actually, I'm somewhat curious as to which category/code you actually used for line 36

(From IRS instructions)

Line 36
Include in the total on line 36 any of the following write-in adjustments. To find out if you can take the deduction, see the form or publication indicated. On the dotted line next to line 36, enter the amount of your deduction and identify it as indicated.

Archer MSA deduction (see Form 8853). Identify as “MSA.”
Jury duty pay if you gave the pay to your employer because your employer paid your salary while you served on the jury. Identify as “Jury Pay.”
Deductible expenses related to income reported on line 21 from the rental of personal property engaged in for profit. Identify as “PPR.”
Reforestation amortization and expenses (see Pub. 535). Identify as “RFST.”
Repayment of supplemental unemployment benefits under the Trade Act of 1974 (see Pub. 525). Identify as “Sub-Pay TRA.”
Contributions to section 501(c)(18) (D) pension plans (see Pub. 525). Identify as “501(c)(18)(D).”
Contributions by certain chaplains to section 403(b) plans (see Pub. 517). Identify as “403(b).”
Attorney fees and court costs for actions involving certain unlawful discrimination claims, but only to the extent of gross income from such actions (see Pub. 525). Identify as “UDC.”
Attorney fees and court costs you paid in connection with an award from the IRS for information you provided that helped the IRS detect tax law violations, up to the amount of the award includible in your gross income. Identify as “WBF.”

FE

[peggysioux]

1099 - Other Income

I have a taxpayer who received a 1099-M from the employer of the taxpayer's deceased spouse but she repaid the employer for the amount of the 1099-M (she gave me a copy of the cancelled check). I originally put the income on line 21 and was going to deduct on line 36 until I saw your response. Based on the items you list, I should not use line 36 either. Should the deduction go on Schedule A, line 28? Taxpayer does not have enough to itemize.

[Burke]

If the money was paid in error, the employer should issue a corrected 1099. Why was it repaid?

[peggysioux]

1099 on line 21

If the money was paid in error, the employer should issue a corrected 1099. Why was it repaid?

Taxpayer said deceased spouse's employer gave her the money as a loan and she repaid, but they issued 1099. Should taxpayer try to get employer to retract the 1099?