Get your taxes done using TurboTax

 @paris37 

SEE MY LATER COMMENT  NOT THIS ONE!  as not taxable.  Must be entered but, IRS considers these rebates as reductions of costs so while it must be entered you need a negative OTHER INCOME reported to offset if. 

According to the IRS, under IRC Sec. 61(a), gross income means all income from all sources, unless otherwise provided by law. Thus, gross income generally includes rebates. Federal law does provide some exceptions. For example, IRC Sec. 136 exempts energy conservation subsidies from tax. But, expansion of IRC Sec. 136 to water conservation rebates would require a legislative change.

So for Federal you will enter it as OTHER INCOME.  During the state return, you then ned to enter it as adjustment for state income taxes.

Your 1099 Misc should not have any income in box 1,5,9,10 as that would be Self Employment income.

First, you will need to delete the original 1099-MISC you entered so you can start over.  

Here are the steps to enter your 1099-MISC as Other Income and NOT self-employment (Schedule C):

·         Type 1099 misc in Search (upper right of program) and select the Jump to 1099 misc link

·         Enter your 1099-MISC with Box 3

·         Describe the reason for this 1099-MISC, enter UNEARNED INCCOME REBATE

·         Does one of these uncommon situations apply? – check None of these apply

·         Did the income involve work that’s like your main job? – check No, it didn’t involve work like my main job

·         How often did you get income?  once

·         Did the income involve an intent to earn money? – check No, it didn’t involve an intent to earn money

·         TurboTax will now place this in Other Income (rather than self-employment income which requires Schedule C)

NOTE:  If you need additional assistance, please comment and I will assist further.

• If you need to enter boxes 4–6 or 8–17, select My form has other info in boxes 1–18 to expand the form.