I received a 1099-Misc with other income amount due to the Cares Act grant in 2020 for rental assistance. I tried to enter this in Schedule E section but would not take since the Rents box is blank. Where do I enter this information (what section)? Thanks
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Please explain a little more so I can better answer your question.
1. Other Income Box on the 1099-Misc
2. The State where we have rental property
3. We rented the property for all of 2020.
Thank you for the clarification. What you need to do in TurboTax is report Form 1099-MISC as received, remove it, and finally include it with your Rental Activity.
Enter Form 1099-MISC following these steps:
Step 1; Enter Form 1099-MISC as received.
Step 2: Enter Form 1099-MISC as an offsetting, negative amount.
Step 3: Enter the amount in Box 3 of Form 1099-MISC for your Rental Property.
The rental assistant programs differ state to state. The requirements of the assistance should be reviewed to verify that it is taxable, needs to be reported and whether it will be taxable at the federal and/or state (if your state collects income tax) levels.
[Edited 02/08/2021 | 6:02 AM PST]
Step 1 and Step 2 entered. Yeah!!
Step 3. I received an error when adding this under Rental Income section from the Rental and Royalty Summary for this property (selected EDIT button). It will NOT let me report the income with this property. Turbo Tax says "Can't Report this Income Here. You entered other income of XXXX on this form 1099-Misc. You can't report other income on a rental property. You can report this income on another form or schedule later in the Interview."
instead of reporting it as rental income, you may report it as other income. Here is the procedure.
You will report this in your Turbo Tax return as it is income. Here is the correct way to report it. First
[Edited 02/08/2021|11:15 PST]
Alternate way to enter it:
At the 1099-Misc screen, put the amount in box 1 instead of box 3.
Please let me know if this is correct:
1099 was entered from my Management Company with XXX dollars for rent
1099 was entered from the Cares Act for xxx dollars for rent
Is the 1099 Cares Act Taxable? The amount was added back to my rent total for the year.
Thanks
The government distributed a lot of funds to the states. It was then up to the state to decide how to distribute. Rental income is taxable and the state sent you a form to prove it.
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