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Returning Member
posted Apr 10, 2023 9:27:39 AM

1099G

Hi,

I received a 1099G for a Taxable Grant $13,500 from the USDA. The grant was for reforestation. I used the grant to plant in trees in accordance with the agreement. The  cost for planting these trees was $9,139. Can I use the cost of planting ($9,139) to offset some of the taxes due on the grant?? 

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1 Replies
Expert Alumni
Apr 10, 2023 9:48:23 AM

According to the instructions for Form 1099-G, box 6, since the grant relates to an activity for which you must file Schedule F, do not enter the amount on the 1099-G  entry form.  Instead, report the taxable amount as income on the applicable Schedule F.

 

You can enter this income using these steps:

  1. Click Wage and Income
  2. Scroll down to rentals, royalties, and farm and click Show more
  3. Click Start next to Farm income
  4. Click Edit next to your farm name on the Farm Summary or add your farm name.
  5. On the next screen, Your Farming Income and  Expenses, in the Farm Income section, click on the Start/Update box next to Other farm income.  
  6. Enter the amount in Form 1099-G, box six on the next screen; any Other Income or Credits?