First, you will have to report the amount in box 3 of your 1099-MISC as income, because it's being reported to the IRS. It will appear on your Form 1040 as Other Income on Line 21. Then, you will report a corresponding negative amount on line 21 to zero out this income.
To report the income:
- Report the 1099-Misc in the Other Common Income section.
- Indicate that it is reimbursement, that it does not involve work like your main job, and that it did not involve an intent to make money. The income will be reported on line 21 of your return.
To enter the negative figure:
- Go back to Less Common Income, Miscellaneous Income and Other reportable income.
- Continue to
the screen Other
Taxable Income. Enter the description
of the rebate, and a negative amount.
A corresponding negative amount will be entered, and line 21 will be zero.
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