The 1099-G is also used to report less common sources of income, including taxable energy grants, agricultural payments, and others.
Taxable grants should be reported as MISC other income. Should not be on line 1 of the tax return unless it is wages.
Use this workaround:
This is taxable income not subject to self-employment tax.
The key to getting TurboTax to treat it as other income is to follow these steps:
Enter the 1099G as a 1099 MISC Box 3
On the next screen Describe what the payment was for
On the next screen select "none of these apply"
On the next screen select "No it didn't involve work like my main job"
On the next screen select "I got it in 2020" ONLY
On the next screen select No, it didn't involve intent to earn money
TurboTax will put the amount as other income.
1099MISC
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