I have a rental property. Per the terms of the lease the tenant is responsible for the payment of the utilities. The tenant was supposed to setup the accounts in her name and start paying. However, she neglected to do so. So I ended up paying her water bill twice as it auto charged me. She then later re-imbursed it back to me. Now that I got my 1099-MISC, it is showing up as Other Income.
So how does this work when it comes to my taxes. I don't think this should be considered a taxable income as it the tenant is reimbursing me for something that they owed. Or is it? When I submit my 1099misc in Turbotax, it says the following:
We noticed this 1099-MISC has income that doesn't belong to your rental property
Your 1099-MISC has a value in box:
Box 3 - Other Income $162.85
We'll move this form to the 1099-MISC income section for you.
Once you've finished adding your rental property info, you'll need to review all 1099-MISC income, as well as anything marked Needs review.
As if it is adding that value to my total taxable income. Any ideas if this is how it has to be or can i find a way to remove it?
