Yes, if you received a payment from the utility company and then a Form 1099-MISC for tree removal and damage. A 1099-MISC, with an amount in Box 3, Other income, goes to Line 8 of Schedule 1, as other income. It will be taxed as ordinary income, not a long term capital gain.
If it is in a different box or on a different form, please let us know the details.
To enter:
- Click on Wages & Income, on the left menu
- Scroll down to Less Common Income and click on Show More
- Click on Start or Revisit for Miscellaneous Income, 1099-A, 1099-C
- Select Other reportable Income
- Say Yes to “Any Other Taxable Income”
- On “Other Taxable Income,” enter utility payment for tree damage for the description and enter the amount
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