RobertB4444
Expert Alumni

Business & farm

That's true.  Because a taxable grant for a farm is considered an agriculture payment and generally reported in box 7.

 

In this instance I would enter the amount in box 6 - if it was for the farm - as though it were sent in box 7.  A taxable grant would need to end up on line 4a of schedule F which is listed as "Agricultural Program Payments" and defined in the IRS instructions as -

 

Enter on line 4a the total of the government agricultural program payments that you received. This includes the following amounts.

  • Price loss coverage payments.
  • Agriculture risk coverage payments.
  • Coronavirus Food Assistance Program payments.
  • Market Facilitation Program payments.
  • Market gain from the repayment of a secured Commodity Credit Corporation (CCC) loan for less than the original loan amount.
  • Diversion payments.
  • Cost-share payments (sight drafts).
  • Payments in the form of materials (such as fertilizer or lime) or services (such as grading or building dams).

If you enter your amount from box 6 into box 7 it will end up in the correct part of the form.

 

@kashblack1953 

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