How do I report amount of rental income that was paid by government for my tenant?

[Miguomao]

A part of my rental income last year was paid by a government assistant program for my tenant.  I have included this in my total rental income,  Can I skip this 1099 MISC form?

[Hal_Al · Accepted solution]

Q. Can I skip this 1099 MISC form?

A. Simple answer: yes, since you already included the amount in your total rent received. 

In the rental income section, TurboTax (TT) gives you the option of entering  rental income on a 1099-Misc separately from other rental income, but there is no IRS requirement to enter it that way.  The IRS will only match their copy of the 1099-Misc to the total amount of rental income you report on line 3 of Schedule E.

[Miguomao]

Thanks:  That is perfect!

[Bestvalue888]

May I ask if you received any 1099 form? I also received $3000 from the CA rental assistance program but never received any form ti file tax. I called the CA franchise board, they told me no need to report but they are not sure about Fed. I don’t think they are correct but I am stuck on how to report this $3000 since I don’t have any 1099. Can someone please clarify if this income is needed to report for both Fed. and CA, which I believe so? 

do I just include this $3000 into my other rental income like what you did , disregard waiting for the form to come? Thanks so much for helping everyone. 

[Bestvalue888]

Hello

[Hal_Al]

@Bestvalue888  This is not live chat.

You're tagging on to an existing thread that  is not California specific .  I agree it's unlikely that income is exempt from CA income tax, but don't know for sure. 

Yes, you just include this $3000 into your other rental income like what the other guy did , disregard waiting for a form to come.  

[Bestvalue888]

Oh great thanks for responding. I called everyone and doesn’t seem they know what is going on and how to report. Thanks so much!

[norski050]

Since the tenant received rent money assistance for rent, do I issue a misc1099 to them at the end of the year?  The rent assistance money trail started with the government agency to me and then paying the rent to the lessor.  This amount of money can be high in my book.  And obviously the lessor gained as income the rent assistance.

[Hal_Al]

Q.  Since the tenant received rent money assistance for rent, do I issue a misc1099 to them at the end of the year? 

A.  No. You didn't pay anything to the tenant. Besides, landlords are not required to issue 1099-Misc's even in more clear cut situations. 

[norski050]

The rent assistance was paid thru me from the govt agency.  I am not pleased to have a tenant get free money and then not pay taxes on that income.  A paper trail would be created to the tenant with a misc1099 issued at the end of the year.

[Hal_Al]

You may want to do so research before you do that.  I vaguely recall reading that what you propose could be illegal, criminally.