According to the instructions for Form 1099-G, box 6, since the grant relates to an activity for which you are required to file Schedule F, do not enter the amount on the 1099-G entry form. Instead, report the taxable amount as income on the applicable Schedule F.
You can enter this income using these steps:
- Open your return and go to Wage & Income.
- Click Update next to Farm Income and Expenses.
- On the Farm Summary, click Edit next to your farm name.
- Continue through the interview pages until you come to "Any Other Income or Credits?." Do not enter anything under "Form 1099-G Summary" or "Agricultural Program Payments."
- Enter the amount in Form 1099-G, box 6 on the screen, Any Other Income or Credits? This avoids the form error this income.
- Continue to the end of the section.
If you entered Form 1099-G in another area of your return, go there and delete the 1099-G entry.
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