I had a loss in a partnership due to criminal activity. I wrote off the loss several years ago but am now receiving some restitution. How do I report it if taxable?

waynearmbrust · ‎June 4, 2019

MinhT · ‎June 4, 2019

If you wrote off the loss in the past and had a tax benefit for it, you have to report the restitution as taxable income.

You can report the restitution as Other reportable income.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom and click Show More
On the next page, click Start next to Other Reportable Income (see attached screenshot).

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MinhT · ‎June 4, 2019

If you wrote off the loss in the past and had a tax benefit for it, you have to report the restitution as taxable income.

You can report the restitution as Other reportable income.

In TurboTax, open your return and follow these steps:

Click on Federal in the left-hand column, then on Wages and Income on top of the screen
Scroll down to All Income, locate the Less Common Income section
Click Show more and click Start next to Miscellaneous Income at the bottom and click Show More
On the next page, click Start next to Other Reportable Income (see attached screenshot).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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