Page 94 - Individual Forms & Instructions Guide

14:28 - 20-Jan-2023
Page 87 of 113 Fileid: … ions/i1040/2022/a/xml/cycle11/source
The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
Pub. 525 for details on how to figure the You may have to pay an addi- Incorrect Form 1099-K. If you re-
amount to report. ! tional tax if you received a tax- ceived a Form 1099-K that shows pay-
• Reemployment trade adjustment CAUTION able distribution from a Cover- ments you didn’t receive or is otherwise
assistance (RTAA) payments. These dell ESA or a QTP. See the Instructions incorrect and you can’t get it corrected,
payments should be shown in box 5 of for Form 5329. enter the amount from Form 1099-K that
Form 1099-G. was incorrectly reported to you on
• Loss on certain corrective distribu- Nontaxable income. Don’t report any line 8z. In the entry space next to line 8z
tions of excess deferrals. See Retirement nontaxable income on line 8z. Examples write “Incorrect Form 1099-K” and also
Plan Contributions in Pub. 525. of nontaxable income include the fol- enter the amount that was incorrectly re-
• Dividends on insurance policies if lowing. ported to you. For example, if you re-
they exceed the total of all net premiums • Child support. ceived a Form 1099-K that incorrectly
you paid for the contract. • Payments you received to help you showed $800 of payments to you, you
• Recapture of a charitable contribu- pay your mortgage loan under the HFA would enter $800 on line 8z and in the
tion deduction relating to the contribu- Hardest Hit Fund or the Homeowner As- entry space next to line 8z you would
tion of a fractional interest in tangible sistance Fund. write “Incorrect Form 1099-K - $800.”
personal property. See Fractional Inter- • Any Pay-for-Performance Success See the instructions for line 24z.
est in Tangible Personal Property in Payments that reduce the principal bal-
Pub. 526. Interest and an additional 10% ance of your home mortgage under the
tax apply to the amount of the recapture. Home Affordable Modification Pro- Adjustments to
See the instructions for Schedule 2, gram.
line 17g. • Life insurance proceeds received Income
• Recapture of a charitable contribu- because of someone's death (other than
tion deduction if the charitable organiza- from certain employer-owned life insur- Line 11
tion disposes of the donated property ance contracts).
within 3 years of the contribution. See • Gifts and bequests. However, if Educator Expenses
Recapture if no exempt use in Pub. 526. you received a gift or bequest from a If you were an eligible educator in 2022,
• Taxable part of disaster relief pay- foreign person (including amounts from you can deduct on line 11 up to $300 of
ments. See Pub. 525 to figure the taxa- foreign corporations and foreign partner- qualified expenses you paid in 2022. If
ble part, if any. If any of your disaster ships that you treated as gifts) totaling you and your spouse are filing jointly
relief payment is taxable, attach a state- more than $17,339, you may have to re- and both of you were eligible educators,
ment showing the total payment re- port information about it on Form 3520, the maximum deduction is $600. How-
ceived and how you figured the taxable Part IV. See the Instructions for Form ever, neither spouse can deduct more
part. 3520. than $300 of their qualified expenses on
• Taxable distributions from a Cov- Form 1099-K loss reporting. If you line 11. An eligible educator is a kinder-
erdell education savings account (ESA) sold a personal item at a loss, either re- garten through grade 12 teacher, instruc-
or a qualified tuition program (QTP). port the loss on Form 8949 or report it tor, counselor, principal, or aide who
Distributions from these accounts may on line 8z. If you report the loss on worked in a school for at least 900 hours
be taxable if (a) in the case of distribu- line 8z, enter the amount of the sale pro- during a school year.
tions from a QTP, they are more than ceeds from Form 1099-K on line 8z. In
the qualified higher education expenses the entry space next to line 8z write Qualified expenses include ordinary
of the designated beneficiary in 2022 or, “Form 1099-K Personal Item Sold at a and necessary expenses paid:
in the case of distributions from an ESA, Loss” and also enter the amount of the • For professional development
they are more than the qualified educa- sale proceeds. For example, you bought courses you have taken related to the
tion expenses of the designated benefi- a couch for $1,000 and sold it through a curriculum you teach or to the students
ciary in 2022; and (b) they were not in- third-party vendor for $700, which was you teach; or
cluded in a qualified rollover. Nontaxa- reported on your Form 1099-K. In the • In connection with books, sup-
ble distributions from these accounts entry space next to line 8z you would plies, equipment (including computer
don’t have to be reported on Form 1040 write “Form 1099-K Personal Item Sold equipment, software, and services), and
or 1040-SR. This includes rollovers and at a Loss - $700.” See the instructions other materials used in the classroom.
qualified higher education expenses re- for line 24z. An ordinary expense is one that is
funded to a student from a QTP that If you sold more than one per- common and accepted in your educa-
were recontributed to a QTP with the TIP sonal item at a loss or received tional field. A necessary expense is one
same designated beneficiary generally more than one Form 1099-K that is helpful and appropriate for your
within 60 days after the date of refund. for personal items you sold at a loss, in profession as an educator. An expense
See Pub. 970. the entry space next to line 8z write doesn’t have to be required to be consid-
“Form(s) 1099-K Personal Items Sold ered necessary.
at a Loss” and enter the total amount of
the sale proceeds on line 8z.

-87-