Form 1099-G Taxable Grant (box 6) Issued in my company name. Does this get entered into TurboTax Business?

[miklb582]

The State of Tennessee offered grants to certain small businesses that were forced to close during the Spring of 2020. I've received a Form 1099-G, with the grant amount in box 6 "Taxable Grants"

I cannot find the form or where to enter this into TurboTax Business.

I'm wondering if I should just include the grant proceeds in my income, or if this needs to go into a specific place in TT Business.

[ThomasM125]

If the income was reported under the federal ID number for your business, then you should report it on your business tax return. You would report it as Other Income. If you respond with what business tax return you are filing (1120-S, 1065, 1120, sch C), we may be able to be more specific.

[miklb582]

@ThomasM125 Thank you, and I'm sorry. I should have known to add what form we file.

It is 1065.

[Meng66]

@ThomasM125 I file 1120S and don't know how to enter 1099G issued for business. I am using TurboTax Business version to file tax. Could you please provide more specific help? Thanks!

[ReneeM7122]

If the Taxable Grant was reported under the name and federal ID number for your business, then you should report it as Other Income.

[jessly314]

Hi! My partnership received a 1099-G grant from our local government. Where do I report the taxable grant amount box 6 in Turbo Tax? Do I have to pay self employment tax for it?

[JeffreyR77]

It depends.  It should be reported as All Other Income in TurboTax Business. 

If the Partnership has a loss, there will be no pass through income for self-employment tax to be assessed on your individual tax return.   It is not separately taxed.

[Lee431]

Same issue but I file Schedule C

[ToddL99]

Report it on your Schedule C as "General Income" (Business income, including income reported on Form(s) 1099-K).  

See the attached example from TurboTaxTax Home & Business (same as online TurboTax Self-Employed).

@Lee431

[RPJR]

When I enter this grant as "other income", when I get to the state section, how do I adjust to remove that grant as it is NOT taxable under the state of NJ?

[DaveF1006]

Yes, taxable grants are excluded from NJ income. As you are navigating through your NJ return in Turbo Tax, when you reach the screen that is displayed below, you may remove the amount in that box and make it blank.

[Sondra7]

I am using TurboTax Business for my S corp return.  I received a 1099-G Taxable Grant that is not taxable for my CA state return.  How do I remove it from my 100S AND have it reflected in my K1? 

[LeonardS]

Yes, if the grant was issued in your company name and EIN then you will report the grant on your TurboTax Business program.

However, if the 1099-G grant was issued using your social security number then you will enter the grant in your personal tax return Form 1040.

To enter your 1099-G Grant in personal return sign in to your TurboTax account if it is not open and follow these steps:

1. Select Income & Expenses.
2. Scroll down to Less common income and select show more.
3. Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
4. On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
5. On the page Any Other Taxable Income select yes.
6. On the page, Other Taxable Income enter 1099-G Grant as the description and the amount of the grant.
7. Select continue.
8. Select done on the next page

[DM007]

@Sondra7 I have the exact same question as yours and no one has answered it correctly yet. Did you figure it out? This is driving me crazy. I added the CA  Small Business COVID-19 Relief Grant on Line 5 “Other income” line on the 1120S and then deduct it on the 100S Line 12 “Other deductions” line. It increased my ordinary business income (box 1), which is fine for federal taxes, and reduced my S-corp franchise taxes, but how do I show the adjustment on my K1 to reduce my personal CA state taxes?

[Sondra7]

@DM007No I still have not found out how to show the adjustment on my K1 to reduce the personal CA taxes.  I’m hoping that someone will offer some guidance soon.