What this line means
A catch-all line for taxable income that does not belong on any other specific line of Schedule 1. You must list the type and amount of each income source. Common examples include bartering income, hobby income, jury duty pay turned over to an employer, director fees, and recovered amounts previously deducted. If your income does not fit on lines 8a through 8v, it goes here.
Does this apply to you?
- You exchanged goods or services through bartering and received a Form 1099-B from a barter exchange
- You earned income from a hobby or activity not engaged in for profit
- You received jury duty pay that you then turned over to your employer
- You served on a board of directors and received director fees
- You recovered a deduction taken in a prior year (bad debt recovery, state tax refund not on line 1)
- You received taxable income not reported elsewhere on your return
Easy to overlook
Bartering income is taxable at fair market value If you exchanged services with another person or through a barter exchange, the fair market value of what you received is taxable income. 1 A plumber who trades $800 in plumbing work for $800 in electrical work has $800 of taxable income. Barter exchanges report transactions on Form 1099-B, and the IRS matches them to your return. Even informal bartering without a 1099 is taxable. General filing pattern — bartering and hobby income unreported
Hobby income is taxable but hobby expenses are not deductible If you sell items or provide services through an activity the IRS considers a hobby (not a business), the income is taxable but you cannot deduct expenses against it. 2 An activity is presumed to be a hobby if it has not produced a profit in three of the last five years. The income goes on line 8z, but unlike business income on Schedule C, there is no corresponding deduction for costs. IRS Publication 525 — Taxable and Nontaxable Income
Watch out for this
Leaving the “List type and amount” description blank. Unlike most lines, line 8z requires you to describe the type of income and the amount. Entering a number without a description prevents the IRS from verifying the source and prompts a follow-up letter. Write a brief description like “jury duty pay” or “bartering income” alongside the amount.
Footnotes
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IRS Publication 525, Taxable and Nontaxable Income, Bartering. https://www.irs.gov/pub/irs-pdf/p525.pdf ↩
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IRS Publication 525, Taxable and Nontaxable Income, Hobby Income. https://www.irs.gov/pub/irs-pdf/p525.pdf ↩