Common questions on the Form 1040 Worksheet in ProSeries

Most data entry for the Form 1040 is completed in other locations, however there are a few items that may need to be entered on the Form 1040 Worksheet. This article will help you with entries on the 1040 SR Wks.

Entering virtual currency or digital assets:

The IRS has added line 8v to Schedule 1 for reporting digital assets, like cryptocurrency or non-fungible tokens (NFTs), that were received as ordinary income and not reported elsewhere.

In most cases cryptocurrency or virtual currency is reported on the tax return in the same manner as property such as stock or other capital gains or losses. See Frequently Asked Questions on Virtual Currency and Digital Assets Transactions for the IRS guidelines.

If you are reporting Digital Assets transactions in the 1040 return, be sure to mark the Yes box on the "At any time during 2024, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?" question.

Entering alimony:

Enter alimony paid or received on Form 1040 as follows:

Per IRS Publication 504, amounts paid as alimony under a divorce or separation agreement executed after 2018 won’t be deductible by the payer or includible in the recipient’s income. In this situation, you don’t need to enter alimony paid or received on your client’s return.