@Critter-3 wrote:
I wonder if the new 1099-G will have a different code or you will get a 1099-misc instead ... wait for the form you will get in January ... only then will we know the path that is needed.
Box 6 is already "taxable grants." The question I suppose is whether the question "Is this the kind of taxable grant that qualifies as compensation under the new §219?" is going to be for the government payor to determine (which would need a new box) or for the taxpayer to certify for themselves.). The 2021 1099-G is already released so my guess is the latter.
My guess is, when making an IRA contribution without earned income, Turbotax should look for a 1099-G box 6 and ask the taxpayer "was this payment for graduate student or postdoctoral training, or some other kind of grant?" Alternatively, this may require an override if it is one of those things where the IRS says "attach a written statement". I think we just have to wait to see how it is implemented.
