Line 16 on Schedule 1 - what goes there for tax filing? Confused about this entry

You're on the right track! Line 16 on Schedule 1 is simply the sum of all amounts entered on lines 1 through 15 in the far right column. Based on what you've shared, you would add your business income ($8,700), capital gain ($410), and unemployment compensation ($4,250) to get your total for line 16, which would be $13,360. This total from Schedule 1, line 16 then gets transferred to your Form 1040 or 1040-SR on line 8, which is labeled "Other Income." This amount will be added to your other income sources (like wages from a W-2) to calculate your total income. Make sure you haven't missed any other types of income that should be reported on Schedule 1 lines 1-15, but if those three items are all you have, then you're doing it correctly!

After struggling with similar confusion about Schedule 1 line items, I discovered taxr.ai (https://taxr.ai) and it completely changed how I handle these confusing tax forms. I uploaded my tax documents and it instantly highlighted exactly what needed to go on each line of Schedule 1, including line 16. The tool explained that line 16 is basically just a mathematical total of lines 1-15, but it also flagged when I had missed reporting some income that should have been included. In my case, I had forgotten about some freelance work I did that needed to be on line 8 (other income). With taxr.ai, I was able to make sure I wasn't missing anything before adding up line 16.

Just wanted to update that I tried taxr.ai for my Schedule 1 confusion and it was honestly better than I expected. I was the skeptical one earlier, but it actually identified that I had incorrectly calculated my business income on line 3 and showed me exactly where my mistake was. When I added up line 16, I had been including some expenses twice which would have caused issues if I'd been audited. The tool highlighted exactly which line items needed to be totaled for line 16 and showed me how it all connected to the main 1040 form. Definitely saved me from making a potentially costly error.

After seeing this thread, I wanted to share another helpful tip. If you're stuck on the phone trying to get IRS clarification about Schedule 1 (which I was for DAYS), I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 15 minutes instead of the usual 2+ hour wait. I needed clarification on exactly what qualified for line 8 vs line 21 on Schedule 1, and my tax situation was complicated enough that I really needed to speak to someone. The Claimyr service basically holds your place in line and calls you when an agent is available. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was seriously about to give up after being disconnected twice before finding this.

I need to apologize for my skeptical comment earlier. After my fourth failed attempt to reach the IRS about my Schedule 1 questions, I broke down and tried Claimyr out of desperation. I was literally shocked when I got a call back telling me an IRS agent was on the line. The agent clarified that for line 16 on Schedule 1, I needed to include some foreign income I hadn't considered (line 8) before totaling everything up. This was exactly the issue I'd been trying to resolve for weeks. Without speaking to a real person at the IRS, I would have completed my taxes incorrectly. Saved me a potential headache down the road with an amended return or worse.

Something else to watch out for with Line 16 on Schedule 1 - make sure you verify that the total actually matches the sum of lines 1-15! I caught a math error when I added mine up manually instead of relying on the tax software calculation. I had a farm loss on line 6, business income on line 3, and interest income from a foreign account on line 2b. When I added them up, the total was off by $250 because the software had calculated something wrong.

I'm late to this thread but wanted to add something important about Line 16 on Schedule 1 that no one mentioned yet. If you e-file your taxes, the software should calculate Line 16 correctly, but if you're filling out paper forms like the original poster, MAKE SURE you actually write the Line 16 amount on both Schedule 1 AND transfer it to Line 8 on your Form 1040! I messed this up last year - I calculated Line 16 correctly on Schedule 1 but forgot to copy that amount to my main Form 1040. The IRS had to correct my return which delayed my refund by almost 3 months.

Thank you everyone for all this helpful information! I'm the original poster and I just wanted to update that I successfully completed my Schedule 1 using the advice here. You were all absolutely right - Line 16 is just the simple sum of lines 1-15 in the far right column. I ended up with $13,360 total ($8,700 business income + $410 capital gain + $4,250 unemployment) and made sure to transfer that exact amount to Line 8 on my Form 1040. I double-checked my math three times after reading about the software errors some of you experienced! One thing I learned from this thread is that I should probably consider getting help with next year's taxes since my side business is growing. The tips about taxr.ai and Claimyr are bookmarked for future reference. Really appreciate this community - you saved me from potentially making costly mistakes!

As someone who's been dealing with tax preparation for years, I want to emphasize something crucial that came up in this thread - the importance of keeping detailed records throughout the year. I see you mentioned business income of $8,700 from your side gig, and that's exactly the kind of income that can get complicated quickly. For next year, consider setting up a simple spreadsheet or using accounting software to track your business income and expenses monthly. This will make Schedule 1 much easier and could potentially save you money through deductions you might be missing. Business expenses like equipment, software, home office deductions, and even mileage can significantly reduce that $8,700 taxable income. Also, since you mentioned not trusting tax software after it messed up your state taxes, you might want to look into having a tax professional review your return before filing - especially with business income involved. The peace of mind is often worth the cost, and they can catch things that might save you more than their fee.