Other Income

This is archived information that pertains only to the 2004 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Other income is reported on Form 1040(PDF) line 21, where you list its type and amount. You can attach a statement to your return with additional information. The following are examples of income to report on line 21:

Gambling winnings (lotteries, raffles), etc. Report the full amount received. You cannot offset losses against winnings and report the difference on line 21. If you itemize, report gambling losses on Schedule A, but not for an amount more than winnings claimed.

Prizes and awards received other than in connection with your trade or business. A prize or award that is received in connection with your trade or business is reported on Schedule C Form 1040, line 6 or Schedule C–EZ Form 1040, line 1 (if you are self–employed), or on line 7, Form 1040 (if you are an employee).

Fees for jury duty. (If you turn over all or a portion to your employer who continued to pay you while you served, show this reduction of the fee on line 35 and write "jury pay" on the dotted line.)

Fees for being an executor, administrator or personal representative of an estate. (Fees for a professional executor, administrator, or personal representative (one who is engaged in the trade or business) are reported on Schedule C. Fees for a nonprofessional are reported on line 21 of Form 1040(PDF) unless (1) the estate requires extensive managerial activities on your part for a long period of time and the activities may rise to the level of a trade or business, or (2) the estate includes an active trade or business in which you actively participate and the fee is for the operation of that trade or business.)

Canceled debts. If a debt you owe is canceled or forgiven, other than as a gift or bequest, you may have to include it in income. Refer to Publication 525, Taxable and Nontaxable Income, for exceptions and exclusions. You may also refer to Publication 908(PDF), Bankruptcy Tax Guide.

Alaska Permanent Fund Dividends. (If filing a Form 1040A(PDF) use line 13 or if filing a Form 1040EZ(PDF) use line 3 (unemployment compensation is also reported on these lines).

Qualified state tuition program earnings if greater than the beneficiary's adjusted qualified education expenses. Refer to Publication 970, Tax Benefits for Education,

Income from rental of personal property (and not rental of real estate). (If you engaged in the rental for profit but are not in the trade or business of renting property, you show expenses on line 35 and write "PPR" on the dotted line. If you do not rent property for a profit, deductions relating to rentals cannot exceed the income from rentals and may be claimed only as itemized deductions on Schedule A. Income and expense are reported on Schedule C if you are in the trade or business of renting personal property.)

Income from an activity not engaged in for profit, such as a hobby. Deductions relating to the activity cannot exceed the income from the activity and may be claimed only as itemized deductions on Schedule A.

Damages received for the following: personal nonphysical injuries or sickness; backpay/lost profits (in most cases); and punitive damages relating to any injury or illness. Damages for emotional distress in a case not involving personal physical injury, except to the extent the damages are paid for medical care. (Interest on any award of damages is includable as interest income).

Reimbursements or other amounts received for items deducted in an earlier year, such as medical expenses, real estate taxes, or home mortgage interest. Refer to "Recoveries" in Publication 525, Taxable and Nontaxable Income, for details on how to figure the amount to report.

Loss on certain corrective distributions of excess deferrals. resulting from contributions made to a qualified retirement plan. Refer to Publication 525, Taxable and Nontaxable Income under Employee Compensation — Retirement Plan Contributions.

Note: Income reported on Form 1099-MISC(PDF) in Box 7 as non-employee compensation IS NOT included on line 21. Refer to Topic 408.