@ RMenschel Yes, you are correct in that the Form 1099-G you received should be entered in the Other Common Income section of TurboTax, although, depending on your situation, you may have to enter such income another way which we discuss below. As a way of background, federal, state, or local governments will send a Form 1099-G if they made payments of:
- Unemployment compensation.
- State or local income tax refunds, credits, or offsets.
- Reemployment trade adjustment assistance (RTAA) payments.
- Taxable grants.
- Agricultural payments.
Because it appears that you received a taxable grant, then Form 1099-G was the correct form to send you. Whether this taxable grant is just other income or part of your business income depends on your particular situation. For example, if you received the taxable grant not in connection with any business that you owned or operated, then the taxable grant will be treated as other income, and will appear on your Schedule 1, Line 8, and it will also appear on your Form 1040. You will pay tax on this taxable grant at whatever your applicable tax rate is.
However, in the event you received the taxable grant in connection with your business, and in your business you are required to file a Schedule C, Profit or Loss From Business, Schedule C-EZ, Schedule E, Schedule F or Form 4835, then in that case, you would instead report the taxable amount allocable to the activity on the appropriate schedule or form. In other words, the taxable grant would not be treated as other income but would be considered business income, and you would enter the taxable grant in the Business Items section of TurboTax.
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