The "Other Reportable Income" interview will accept a negative number (you may be trying to enter the "offset" in the 1099-MISC interview).
You have to report the income first, as a 1099-MISC, and then report the offsetting amount as "Other Taxable Income".
Enter the information as follows in the 1099-MISC interview:
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Enter the 1099-Misc in the Other Common Income section of Income and Deductions. (Enter "1099 misc" in the Search Box and Select "Jump to 1099 misc form")
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For "Description", enter "Down payment grantt"
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Also check that it does not involve work like your main job, that it did not involve an intent to make money, andis not a recurring payment (received in the past or expected in the future) (these questions only apply to active, not passive, income).
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The income will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).
To enter the "adjusting entry":
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Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" to get to this screen
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Continue to the screen "Other Taxable Income". Enter the description as "Down Payment Grant Offset" and the amount as a negative number. Entering "- $10,000" (example) here will offset the amount reported on the Form 1099-MISC. These are NOT wages.
