1099-G from USDA

[oldfarmer54]

I received a 1099-G from USDA for a payment under a conservation program. The 1099-G shows the payment in box 6 as a Taxable grant. When I try to enter it in Turbotax for my schedule F it does not have a blank for box 6?

I appreciate that I could enter the 1099-G in the section for personal income but the proper place would be for the farm schedule F and I do not want to enter it as personal to decrease my schedule F income. How do I enter it?

thanks

[ErnieS0]

Since you are using TurboTax Home & Business CD/Download, enter your conservation program payments using Forms mode.

1. Click on Forms in the upper right next to Flags and Notifications
2. Click on Schedule F in the left column
3. In the big window, scroll down to Part 1, line 4a
4. Enter the amount on line 4a and the taxable amount on line 4b
5. Click on Step-by-Step in the upper right (where Forms use to be) to return to the interview mode

[oldfarmer54]

Thanks

I tried it and it won't allow me to enter a number in 4a unless I right click and select override and then when I enter the number it is in red- what am I doing wrong?

[ErnieS0]

Was there an amount already in the box? Also you entering your line 4a number in the yellow box (not the white box)?

[oldfarmer54]

There was already a number in the box from a different 1099-G that came from the worksheet so I went through and deleted the 1099-G from the worksheet to reset the boxes to zero. I was then trying to enter in the white box as the yellow box says (not reported on 1099) and I was worried it would flag since I have 2 1099-G from USDA, one with box 6, the other with box 7 

[ErnieS0]

Yes the worksheet says to not enter a number into the yellow box if it's on a 1099, but as you pointed out, there is no Box 6 entry.

The IRS doesn't get the worksheets. That's just to help you fill out your taxes. All they will see is a Box 6 total. As long as that matches your 1099, you will be fine.

[oldfarmer54]

Sorry I am dense- the area you marked is for Crop Insurance proceeds which does not apply to me.

My two 1099-G are for a taxable grant and a (box 6 on the 1099-G) and the other is ag payments (box 7)?

If I enter them in 4a as not from 1099's and 4b the total taxable how does IRS tie it to the 1099's USDA reported?

Thanks

[DawnC · Accepted solution]

They don't match them up form by form, box to box.   They are looking at totals.  As long as you report all of your income on your return, you have nothing to be concerned about.  

The only place to enter an amount for Box 6 is in the personal income section.   If entered there, the taxable income goes on your return in the Other Income section.   All of the farm expenses related to the income will still be deducted on your Schedule F.    So, you are not losing out on any deductions by reporting the income in Box 6 in the personal section.   The box 7 income can be reported in the Farm Income section.   But the box 6 government income is reported with your personal income.     You can enter the income from Box 6 using Forms Mode as described above - the tax will work out the same, but the descriptions as you see, won't match up perfectly.  

[oldfarmer54]

Thanks

I am trying to match the income to the schedule F rather than other income so I don't have an issue with hobby loss

Appreciate the help

[oldfarmer54]

My 1099-G was for CSP rather than EQUIP. You are right, the way Turbo Tax handles it I end up with the income as "other personal income" and a mismatch as all the expenses I incurred are on my schedule F so my schedule F is deflated which is important with hobby loss rules.