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Level 2

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Taxable Grants

2 replies
57 views

I have been under the Pecfa Clean up fund for the last 6 years. Each year they send me a 1099-G that creates a taxable liability that should not be taxed under the state statue. I had to Amend 3 years and the IRS still shows this as taxable. Any suggestions who I can try to reach out to to get this matter taken care of properly? I have 2 more years that need amending and Iam not getting anywhere. The IRS owes me quite a bit of money over this would like to collect.

Alumni - Intuit

How do they report the 1099-G?

Box 6 is for taxable grants, so if it isn't taxable, they probably shouldn't report it that way.

I suggest you report the 1099-G and then make a subtraction with a description of "PECTA REIMBURSEMENT" or something similar.

Enter the 1099-G

Now you need to make an entry so that TurboTax will make the income exempt from tax.

Go back to the Wages & Income section

Scroll down to the VERY LAST option "Less Common Income" and click Show more

On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click REVISIT

Now scroll down to the VERY LAST option "Other reportable income" and click Start

Select YES on the "Any Other Taxable Income?" screen

Type "PECTA REIMBURSEMENT ON 1099-G" and the same amount you entered before but as a NEGATIVE (put - in front of the number)

This NEGATIVE number should show on your 1040 line 8

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

Alumni - Intuit

How do they report the 1099-G?

Box 6 is for taxable grants, so if it isn't taxable, they probably shouldn't report it that way.

I suggest you report the 1099-G and then make a subtraction with a description of "PECTA REIMBURSEMENT" or something similar.

Enter the 1099-G

Now you need to make an entry so that TurboTax will make the income exempt from tax.

Go back to the Wages & Income section

Scroll down to the VERY LAST option "Less Common Income" and click Show more

On this new drop-down list scroll down to the VERY LAST option "Miscellaneous Income" and click REVISIT

Now scroll down to the VERY LAST option "Other reportable income" and click Start

Select YES on the "Any Other Taxable Income?" screen

Type "PECTA REIMBURSEMENT ON 1099-G" and the same amount you entered before but as a NEGATIVE (put - in front of the number)

This NEGATIVE number should show on your 1040 line 8

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

LivingLife2020Author

Level 2

They send one every year with box 6 marked and then when I call them they tell me to write a letter to the IRS stating the state statue that explains why it is not taxable. I do that and the IRS never takes the income off of my transcript so I have to pay income tax on large amounts each year. I will try what you recommended, thank you!