B. Jani Posted March 31, 2012 Report Posted March 31, 2012 I am a new york preparer working on PA resident tax. Federal w-2 (66K) income and one 1099-misc for 27k. Federal forms are 1040 and C. While finalizing PA, I see that 1099-misc is added to line 1 (Total 93k) in PA-40 with gross income and ALSO line 4 shows the PA Sch C (27k less 5k expenses Total of 22k) (copy from Federal Sch C minus expenses). So ATX does add 27k 1099-misc at line 1a and also Sch C brings 22k to line 4 create the PA income of 115k on line 9 and line 11 in PA-40. Is this correct or I should remove 1099-misc income from line 1 for PA and keep the line 4 because Sch C is present for Federal as well as PA. Can someone from PA please help. TIA, Quote
Crank Posted March 31, 2012 Report Posted March 31, 2012 Im not using ATX this year but the 1099-Misc should not be on the "Gross Compensation" line 1a of the PA-40. It should be only on line 4 "income from business". Hopefully someone will be along to tell you what to check or uncheck to stop it from carrying to line1. Hope this helps. Quote
rfassett Posted March 31, 2012 Report Posted March 31, 2012 At the bottom of the screen when you are in the PA40, find the tab for Ln 1a, Ln 13 Wkst - 1099MISC. Your 1099 info should be there. Put an H in box b and make sure there is nothing in block G (there should be nothing in either of the blocks for G. This is not PA compensation, it is business income. Quote
B. Jani Posted March 31, 2012 Author Report Posted March 31, 2012 Thank you very much. I thought so but wasn't sure. It's a little trick ATX has always has it to fix it. Have a nice weekend and once again Thank you. Quote
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