@rkrkrkCA
EDITED MY RESPONSE. CORRECTED BELOW:
IRS requires a 1099 for all amounts over $600.
:
Taxpayers will make purchases, as a result of those purchases, will be entitled to receive rebates…. The portion of the purchases that taxpayers can…receive back in cash…does not constitute gross income to taxpayers. It is instead considered a reduction in the cost of the heat pump. Any energy credits being taken, you would reduce your cost of the item by the rebates received.
When entering the 1099 misc indicate that it is "Green Energy rebate for heat pump, IRS considers a Reduction of cost" Continue and say it is not related to your job. say no it did not involve an intent to earn money.
Then you will enter less common income 1099 misc again and make an adjustment for it:
During entry for the 1099misc
- go to the federal income section
- scroll to the bottom
- Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description IRS considers rebates as reductions of cost
- Amount, enter your amount as a negative
- continue
Did you know: High-efficiency heat pumps and mini splits are eligible for a federal tax credit up to $2,000.https://www.irs.gov/pub/taxpros/fs-2022-40.pdf Would be under the Home Energy Tax Credit section of TT.
**I don't work for TT. Just trying to help. All the best.
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**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
