I ended up selecting "Other 1099-G" under the income section. I entered the grant amount from box 6 there. It went to schedule 3 then on the same line as rental income on my 1040, combined. So, my rental income on Schedule E was less (because I didn't report this grant money there) but the end result was the same. I don't like it because I think rental income should be on Schedule E, but the HOPE contact says they were correct issuing a 1099-G. I have accepted government assisted rent payments many years and always got a 1099 Misc. This time they say I don't know what I am talking about.
