This is a portion of a refundable security deposit paid by a charity on behalf of the tenants. I shouldn't be paying taxes on it because it will eventually be refunded. Turbo tax won't accept it being entered as a 1099 for rent because the amount is in box 7 instead of box 1. It has to be entered as a regular 1099-misc.
Also, this house is owned 50/50 with another person who is not on the 1099 so only $300 of the $600 is mine and the other $300 is for her to put on her taxes. But none of it is really "ours" - it is the tenants.
When I enter my $300 as a regular 1099-misc, and then take an "other deductions" against the house, it does not wash. The tax liability is still increased by about $50 as a result of these 2 entries.
Appreciate any help.
