KrisD15
Expert Alumni

Business & farm

It's more a matter of why was the income reported in Box 6 if it should be in Box 7. 

 

According to the IRS:

 

"Box 6. Taxable Grants

Enter any amount of a taxable grant administered by a federal, state, or local program to provide subsidized energy financing or grants for projects designed to conserve or produce energy, but only with respect to energy property or a dwelling unit located in the United States. Also, enter any amount of a taxable grant administered by an Indian tribal government.

Report amounts of other taxable grants of $600 or more. State and local grants are ordinarily taxable for federal income purposes. A federal grant is ordinarily taxable unless stated otherwise in the legislation authorizing the grant. Do not report scholarship or fellowship grants. See Scholarships in the Instructions for Forms 1099-MISC and 1099-NEC.

 

Box 7. Agriculture Payments

Enter USDA agricultural subsidy payments made during the year, including market facilitation program payments. If you are a nominee that received subsidy payments for another person, file Form 1099-G to report the actual owner of the payments and report the amount of the payments in box 7."

 

IRS 1099-G

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