Entering the information reported on the actual Form 1099-G in the personal side of the tax return is just a means to get the information reported in the right place on the tax return. The data on the form is not transmitted with the return, only the parts transferred to the Form 1040 showing the taxable amounts.
Similarly, as long as you have reported the taxable grant income on your Schedule C with your other business income, then that is all that is required. The IRS already has copies of the actual Form 1099-G and will match the income reported on your return with the income that they know about based on income forms submitted with your business Federal ID number. The information from the form itself is not required to be included with the tax return.
Thank you for the suggestion that the software be updated, but since the only information truly needed for the return is the amount of the taxable income, it is unlikely that it will be changed.
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