I received a grant which is reported on a 1099-misc but it is not income, because the money was used to cover travel expenses for a work conference. How do I report it?

[LisaBr · Accepted solution]

Follow these instructions to enter this 1099-MISC as Other Common Income , not under Self-Employment.

Go to Federal, then Wages and Income.  From there, choose Other Common Income.  Once in this section, choose Form 1099-MISC.  This is where you enter the information in the 1099-MISC.

1.  Describe reason for 1099-MISC (Travel Expense).

2.  Identifying if any of the less common situations for receiving the money applies to your situation.  Choose None since these situations do not apply to you.

3.  Did this work involve activities LIKE your main job?  Focus on basic skill necessary, not the employer.  If you answer yes, TurboTax will let you know you can deduct expenses for this activity (Schedule C).  Since this was for travel expenses, your answer is No.

4.  Did the activity involve an intent to earn money?  Did you do this activity with the sole purpose of earning money .  This answer is also No, since the money is a happy consequence but not "intentional".