I received a USDA NRCS taxable grant to implement conservation practices and have recorded it as income. How do I record the expenses, or otherwise exclude from income?

[Leonard]

To enter your USDA NRCS Grant in TurboTax Deluxe follow these steps

With TurboTax open select  Wages & Income click on I'll choose what I work on

Scroll down to Less Common Income and select Miscellaneous Income, 1099-A, 1099-C

On the next page select Other reportable income 

On the page Other Taxable Income enter USDA NRCS Grant in the description. 

 This will put the income on Schedule 1 Line 21 of your 1040, as required by the IRS.  You will pay state and federal income tax on the amount, but it will not be subject to self-employment tax.

[huntmore9]

can you tell me how to claim expenses incurred with a usda grant and where to list them.

[tpsbrus]

This answer does not conform to what I see in Turbotax 2024.  Please update.

I need to know how to enter the amount received while also deducting the expenses associated with that grant reported box 5 form 1099-G

[tpsbrus]

Box 6, not box 5

[DaveF1006]

If your payment is on Form 1099-PATR or 1099-G and you operate a farm, or have farm rental income, include the amount on your Schedule F, or Form 4835. 

To enter Farm or Farm Rental income:

1. Select Federal on the left side menu.
2. Under  Wages & Income, find Rentals, Royalties, and Farm. If using the software, it will listed as business items and then farm income.
3. Expand the section and select Farm Income and Farm Rental.
4. Select Start/Edit to the right.
5. On the question, Did you have any farm or farm rental income in 2024?answer Yes.
6. On the next screen select all that may apply in your case.
7. The next several screens will help you enter your farm income and expenses.

@tpsbrus