1040-US: Nonbusiness income and deductions on Form 1045 Schedule A and NOL Worksheet 1

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Question

What are the components of nonbusiness income and deductions on Form 1045 Schedule A and NOL Worksheet 1?

Answer

Note: In Forms view, click the NOL folder to view the Net Operating Loss Worksheet 1.

Nonbusiness income

UltraTax CS automatically includes the following on Net Operating Loss Worksheet 1, line 7:

  • Taxable interest and dividend income
  • Taxable state and local refunds (less the business portion)
  • Alimony received
  • Taxable distributions from pensions and IRAs
  • Taxable Social Security and Railroad Retirement Benefits
  • Income from Estates and Trusts
  • Income from REMICs
  • Miscellaneous income not subject to self-employment tax
  • Portfolio income
  • Net royalty income
  • Amounts entered in the Nonbusiness income adjustment field on Screen 1045-3, located under the 1045 & NOL folder

Nonbusiness deductions

UltraTax CS automatically includes the following on Net Operating Loss Worksheet 1, line 6:

  • Taxpayer and spouse IRA deductions
  • Taxpayer and spouse self-employed health insurance deductions
  • Student loan interest deduction
  • Keogh, SEP, and SIMPLE deductions
  • Penalty on early withdrawal of savings
  • Alimony paid
  • Other adjustments
  • Itemized deductions, (less any casualty or theft losses and unreimbursed employee business expenses), or the standard deduction if taken
  • Amounts entered in the Nonbusiness deduction adjustment field on Screen 1045-3, located under the 1045 & NOL folder

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