Because you received a 1099-MISC, the IRS will also
have received a copy. Therefore you will need to report this 1099-MISC on your
1040. However, you can also report a negative amount under miscellaneous
income as "Exempt State Grant" as it related to this 1099-MISC. Make
sure that the negative basis amount being reported does NOT exceed the income
reported on the 1099-MISC.
Here is how to enter
both the 1099-MISC and the negative amount for the basis information as other
miscellaneous income
Once you have signed into your TurboTax Account (for TurboTax Online sign-in, click Here), select "Take Me To My Return" and type "1099-MISC" in the search bar then select "jump to 1099-MISC". TurboTax will guide you in entering this information
- Enter your 1099-MISC
information
- Click through the screen for
work description (do not associate this 1099-MISC with all work listed)
- Does one of these uncommon
situations apply? - None of these apply
- Did the involve work that's
like XXXX main job? - No
- How often did (you) get
income for ? Just leave as 2017 only (even if you received a similar
payment in a prior year, select 2017 only)
- Did the involve an intent to
earn money? No
Now your income will
be reported on line 21 on your 1040.
To enter the
negative amount but only up to the amount of
income being reported on your 1099-MISC,
- Click on the “Federal Taxes”
tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages and
Income”
- Next click on "jump to
full list" or “see all income”
- Scroll down the screen until
to come to the section “Less Common Income”
- Choose "show more",
then Miscellaneous Income
- Choose "Other Reportable
Income" and enter this information here under other taxable
income
- You can title it "exempt state grant related to 1099-MISC income".
[edited 2/12/2018 - 7:49PM PST]
