For most returns, Form 1040 Line 1a, "Wages, Salaries, Tips, etc." consists of income reported on Form W-2. There are several important sources of income reported on this line that may not be reported to the taxpayer on Form W-2:
- Certain wages received as a household employee
- Foreign employer compensation
- Scholarship and fellowship grants
- Strike benefits
- Excess clergy housing allowance
These two sources of income, along with other information, are entered in the Other Compensation Menu. To access this menu, from the Main Menu of the tax return (Form 1040) select:
- Income
- Wages, Salaries, Tips (W-2)
- Other button
This menu has changed over time due to changes to Form 1040. Select the menu for the year you need information on.
2021 and prior
W-2 Default State - This menu line shows what's in your program configuration for the default state that is preselected in box 15 in the Form W-2 and 1099-R entry windows. You can change it if you wish, and the change will take effect for new W-2s and 1099-Rs you enter in this and any other return.
W-2 Default Locality - This menu line shows what's in your program configuration for the default locality name that is prefilled in box 18 in the Form W-2 and 1099-R entry windows. You can change it if you wish, and the change will take effect for new W-2s and 1099-Rs you enter in this and any other return.
Foreign Employer Compensation - In TaxSlayer Pro, there are two places where foreign employer compensation can be entered: here and in the Form 1099-R menu. Click here for more information about FEC.
Taxpayer's / Spouse's Scholarships, Grants - Enter on this line scholarship and fellowship grants not reported on a W-2. Degree candidates should include only amounts received for other than tuition and course-related expenses, e.g., room, board, and travel.
Taxpayer's / Spouse's Fringe Benefits Included on Form W-2, Box 1 - Taxable fringe benefits are generally included in Box 1 of Form W-2 and for informational purposes are also reported in Box 14. Answer YES to this line if any W-2 includes fringe benefits in Box 1.
Taxpayer's / Spouse's Household Employee Income - Enter on this line the household employee income not reported on a Form W-2.
Taxpayer's / Spouse's Prisoner Earned Income - Prisoner income is generally entered in the return via Form W-2 or a substitute W-2. The amount on this line will be deducted for EIC purposes.
Scan Form W-2 2D Barcode - If you are entering W-2s in the program using a barcode scanner, select this line to initiate a scan.
2022 and forward
W-2 Default State - This menu line shows what's in your program configuration for the default state that is preselected in box 15 in the Form W-2 and 1099-R entry windows. You can change it if you wish, and the change will take effect for new W-2s and 1099-Rs you enter in this and any other return.
W-2 Default Locality - This menu line shows what's in your program configuration for the default locality name that is prefilled in box 18 in the Form W-2 and 1099-R entry windows. You can change it if you wish, and the change will take effect for new W-2s and 1099-Rs you enter in this and any other return.
Foreign Employer Compensation - In TaxSlayer Pro, there are two places where foreign employer compensation can be entered: here and in the Form 1099-R menu. Click here for more information about FEC.
Other Earned Income - An entry on this line will be unusual and will be for earned income that's not included anywhere else in the return, i.e., not reported on Form W-2, Schedule C, Schedule F, Schedule K-1 (Form 1065) Box 14A, or a disability pension or corrective distribution reported on Form 1099-R being directed to this line.
Taxpayer's / Spouse's Medicaid Waiver Payments Not Reported on Form W-2, Box 1 - Enter here Medicaid Waiver Payments that weren't reported on Form W-2 or a 1099-NEC or MISC.
Taxpayer's / Spouse's Fringe Benefits Included on Form W-2, Box 1 - Taxable fringe benefits are generally included in Box 1 of Form W-2 and for informational purposes are also reported in Box 14. Answer YES to this line if any W-2 includes fringe benefits in Box 1.
Taxpayer's / Spouse's Household Employee Income - Enter on this line the household employee income not reported on a Form W-2.
Taxpayer's / Spouse's Minister/Clergy Excess Housing Allowance - Irrespective of the amount reported in Form W-2 Box 14 for clergy housing, a member of the clergy cannot claim more than their actual housing expenses or more than the fair rental value of the housing, plus utilities. The excess paid over the greater of actual or fair rental value is taxable and is reported here.
Taxpayer's / Spouse's Prisoner Earned Income - Prisoner income is generally entered in the return via Form W-2 or a substitute W-2. The amount on this line will be deducted for EIC purposes.
Taxpayer's / Spouse's Strike Benefits Received - Enter here strike or lockout benefits received.
Include Medicaid Waiver Payments in Earned Income - When entering a W-2 or 1099-MISC/NEC for Medicaid Waiver Payments, when exiting the window you'll be asked if the taxpayer wishes to include these payments in earned income for the purpose of calculating EIC, CTC, ACTC, and the Child and Dependent Care Expense Credit. Your Yes or No answer is recorded here and can be changed if needed.
Scan Form W-2 2D Barcode - If you are entering W-2s in the program using a barcode scanner, select this line to initiate a scan.
Note: This is an overview of the Other Compensation menu in the TaxSlayer Pro program. This is not intended as tax advice.
Additional Information: